Report on Marketing Fundamentals: Nike's Strategies and Stakeholders

This report provides a comprehensive analysis of Nike's marketing fundamentals. It begins by outlining the marketing process, including situational analysis using the SWOT model, and the application of the SOSTAC model for strategic planning. The report then delves into Nike's objectives, segmentation, targeting, and positioning strategies, along with the tactics employed, such as mobile marketing and newsletters. A detailed examination of the marketing mix (product, price, place, and promotion) is also included. Furthermore, the report explores the role of marketing in creating customer value, emphasizing customer-oriented strategies and the impact of marketing activities on customer perception. The importance of stakeholder engagement, both internal (management, HR, employees) and external (customers), and their influence on marketing activities are also discussed. Overall, the report offers valuable insights into Nike's marketing approach and its effectiveness in the competitive market.

MARKETING FUNDAMENTALS

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1A.........................................................................................................................................4
Process and stages of marketing.............................................................................................4
The role of marketing in creating value for customers...........................................................8
Stakeholder engagement and their impact on the marketing activities..................................9
TASK 1B.......................................................................................................................................10
Reflection of tactical communication tools..........................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing refers to a process of delivering goods and services to the customers. It helps a
company in maintaining the relationship with existing and potential customers by offering them
goods and services as per their needs. Fundamentals of marketing includes various stages such as
conducting market research, segmentation, targeting the customers, designing marketing mix etc.
Nike Inc. is a company that deals in manufacturing, sales of equipment, footwear etc. (Ang,
2018). The headquarter of company is located at Oregon, U.S. The company was founded on 25th
January, 1964 by Bill Bowerman, Phil Knight. The Report will outline process of marketing, role
of marketing, impact of shareholders, reflection of communication tools etc.
TASK 1A
Process and stages of marketing
Marketing is activity of firm which encourages relationship building and managing
customer satisfaction. Process of marketing includes analysing the marketing environment that
includes micro and macro environment through different models, conducting market research for
segmenting, targeting and positioning, developing marketing mix etc. Nike applies SOSTAC
model for conducting planning of marketing for the goods and services of the company.
Marketing environment includes different forces that impacts the working of an organization
(Awan, 2015). However, Situational analysis Nike will perform SWOT analysis for determining
the strengths, weakness, opportunities and threats for the company. The tool is chosen because it
helps the firm in managing business changes and uncertainty of marketing environmental factors.

Strengths of Nike is reflected in its recognition as it is a brand at global level. It is a famous
brand that is preferred by most of the youngsters, consumers etc. The products of the company
were very famous for athletes etc. Company outsources all the facilities for producing goods
from other countries this has help Nike to concentrate on creating value for the customers
through conducting research, designing new models etc. This helps the company to increase its
revenue.
Weaknesses of Nike is that the company mainly focuses on footwear business therefore; it
might be considered risky in case of change in market trends. Company should adopt product
diversification strategy (Chaffey, 2017). Sometimes company faces situations of poor working
conditions in the company. Nike is facing tough competition from various companies that
impacts the profitability and growth of the company.
Nike has an opportunity of expanding its business in sportswear etc. that will help the
company to improve its sales. Company should open various sports academies in various parts of
the world. Nike should adopt online opportunities for satisfying the needs of customers.
Threats of Company is its operations at international level therefore, fluctuations in the
currency affects the business of company (Davis, 2017). The market of footwear is very
competitive thus, Nike is facing competition from major brands.
Objectives, when formulating objective focus of marketing manager is on targeting specific
aspect of innovation in products and services with the motive of increasing sales and managing
brand equity. The objectives of Nike are to maintain the position of company in terms of athletic
Figure 2: SWOT analysis
Source: (SWOT analysis, 2018)

brand in the market of America. To develop innovative products so that, demands of customers
can be satisfied. Managing the international business of company for promoting growth etc.
Strategy- Nike will conduct market research for designing and developing marketing strategy for
the products of the company.
In Marketing research Company will perform marketing research by using different
methods such as primary and secondary research. Through marketing research, Nike will
develop segmentation, targeting and positioning strategy. In Segmentation Nike will segment
the whole market in different segments and homogeneous groups of customers on the basis of
different factors. Company will use demographic factors such as age, family background of the
population, gender etc. Company will also use psycho-graphic characteristics of the population
such as personality, activities of sports persons, their lifestyle etc. for segmenting the whole
market. Another factor on the basis of which company will segment the market is behavioural
characteristics like loyalty of the customers towards the products of the company etc. At the time
of Targeting Company will target the segment on the basis of behavioural characteristics, age
etc. Company will target sports persons, athletes for offering innovative products. On the basis of
demographic variables, Nike will target the customers of 15-45 age group (Hart, 2015). At the
time of positioning strategy for creating the brand image in the minds of targeted segment of
customers. Nike will position its products and brand image through slogan of the company,
providing high quality products, representing the lifestyle of targeted segments through its
products. Tactics of Nike is focused on developing a group so that, effective communication
between customers of online community will take place. Company will use mobile marketing,
newsletters etc. (Hollensen, 2015). In Action plan after developing an effective marketing
strategy for the organization, company will design and develop marketing mix that includes all
those factors that will help Nike for achieving the objectives of marketing and also help to satisfy
the needs and demands of targeted segment of customers. The marketing mix of Nike is as
follows-

Product is the commodity offered by firm to customers. The company will invest funds
on continue basis for conducting research for developing innovative products. Nike has a wide
range of products for offering to the customers. The product mix of company includes Apparel,
footwear, equipment’s etc. Products of Nike are available under different brand name like Hurley
etc.
Price refers to the price at which, company will offer its products to the customers for
maximising the sales and profits of the company (Lim, 2018). Nike will use two different types
of pricing strategies. Company will adopt value-based pricing for setting the prices of products
on the basis of perception of the consumers towards the products of company. Nike will also use
premium pricing strategy in which company will set the price on the basis of quality and value
that products of the company provides to the customers.
Place is essential aspect which denotes physical evidence of firm across the globe. Nike
will sell its products such as apparel, footwear etc. through different outlets at various places
worldwide. Products of Nike will be available at retail stores, online stores and at Nike town that
is owned by the company.
Figure 1 : The 4P's of marketing
Source: (The 4P's of marketing, 2015)

Promotion is the crucial marketing step for the firm which helps in creating awareness of
products and services. Company will use different promotional tools such as personal selling,
sale promotion, advertising etc. to create awareness of the products (Mihai, 2015).
At the time of Monitoring and controlling which helps the firm in outlining success of
marketing efforts. For this company will use different types of controls for controlling the
progress of marketing plan so that, it can evaluate the effectiveness of marketing. Marketing
manager of Nike will compare the actual performance with the standard performance so that,
company can take action for minimising the gaps.
The role of marketing in creating value for customers.
Marketing refers to a process of delivering the products to targeted segment of customers.
It includes various marketing tools that helps in promoting the goods and services of the
company. Marketing plays an important role in creating value for the customers. Customer value
refers to the view and perception of customers towards the product and services of the company.
Value that customers receives against the price that is paid by them for buying the product.
Nowadays, various companies are investing large amount of funds for creating and delivering the
value in various activities that is performed by the company. Customers have high expectations
from the company regarding their services. Therefore, Nike manufactures and offers its products
on the basis of customer-oriented market so that, demands of customers can be fulfilled.
Marketing process of Nike plays an important role in creating and delivering value to the
customers through different marketing activities and strategies such as product, price, place and
promotion etc. The supply chain of the company that starts with sourcing raw material, process
of production, various marketing tools and activities helps in creating value for the targeted
segment of the customers. Employees and management of the company such as Marketing
Manager contributes their efforts for creating value to the customers and this is measured in
terms of the perception of the buyers towards the brand and products of the company. Human
Resource Department that involves in recruiting talented sales force also plays a major role in
influencing the customers for buying the goods of Nike brand. Effective marketing strategy helps
in influencing the perception of customers between the products of Nike and products that are
offered by other companies. Marketing tools helps Nike to differentiate its products like apparel,
sports shoes with other products on the basis of features, price, availability of the product at
various outlets etc. Content marketing helps in informing the customers regarding the various

benefits of the products of the company that results in creating value for the customers. It also
helps the company to satisfy the expectations of customers through effective utilization of
promotional tools such as Facebook, Instagram, personal selling etc.
Marketing manager of Nike plays an important role in defining the features of innovative
products of the company and also helps in explaining the customers that why they should buy the
products of the company. Marketing helps in defining the targeted segment of the company and
promotional tools of marketing helps Nike in creating brand image in the minds of the
customers. All these things help in creating and communicating the value of the products to the
existing as well as potential customers of the company.
Stakeholder engagement and their impact on the marketing activities.
Stakeholders are the individuals, group or entities that can impact or may be affected by
the objectives, actions of the organization. There are different stakeholders that can impact the
marketing activities of an organization.
There are various internal and external stakeholders that plays an important role in marketing of
goods and services. Stakeholders plays an important role in developing and implementing
marketing activities, strategies of Nike. Internal stakeholders are the peoples that are working
inside the company are internal stakeholders. Some of the important internal stakeholders of the
business are, Management in which Marketing manager of Nike plays an important role in
effective formulation and implementation of marketing strategies of the company. Human
Resource Department is responsible for recruiting talented employees that helps in effective
management of marketing activities (Ottman, 2017). Employees are another important internal
stakeholder is employees of Nike. They are responsible for conducting all the operations of the
company. The talent, skills of employees affects the effectiveness of marketing strategy and
activities that are performed for delivering goods of Nike to the customers. The commitment of
workers of Nike plays an important role in proper implementation of marketing activities such as
conducting marketing research, developing marketing mix etc. However, External
stakeholders- External stakeholders of the company are the individuals or the organizations that
directly does not affects the working of the company but they have impact on business planning
and various strategies of the company. Some of the important external stakeholders of the
business are Customers for whom Company performs the marketing activities for influencing
the customers to buy the products of the company. Customers plays an important role in

developing and implementing the marketing strategies in effective and efficient manner. All the
marketing activities are performed by Nike for offering goods and services to the targeted
segment of customers of the company. The buying behaviour of consumers, their perception
towards the goods and services of Nike affects the existing as well as new strategies of marketing
products of the company. The attitude of the buyers towards the products directly affects the
marketing campaign of Nike. Therefore, demands of customers guide the overall direction of
marketing process of the company. The rules, regulations of the Government of different
countries directly affects the marketing campaign of the company. The type and stability of the
government can also affect the marketing strategy. Government performs the role of regulatory
body therefore; the rules and regulations affect the marketing policies and marketing planning of
Nike.
TASK 1B
Reflection of tactical communication tools.
Marketing tactics refers to the tools, actions that helps the company in directing the
promotion of goods or services of the company so that, objectives of marketing strategy will be
achieved. Tactical communication tools that are used by Nike for increasing awareness of the
marketing plan of the company are as follows-
Nike will use blog post as one of the important tactical communication tool for creating brand
awareness and to promote the marketing activities of the company. Blog will provide all the
relevant information regarding the products and services of Nike to the existing as well as
targeted segments of the customers (Zhao, 2015). Content of the blog will cover information
regarding company, information of different outlets where the products are available, details of
existing as well as new products of the company etc. This will help to create interest in the
readers regarding the product. Company will use social media platforms for creating awareness
regarding different marketing strategies such as product, price, place and promotional strategies.
Marketing Manager of Nike will use different tactics for creating awareness of the product
strategy that will be used by the company. Nike will enter in strategic alliance with other
companies for developing a visual brand image of the company that has distinctive features as
compared to competitors. Nike will employ skilled artisans for creating a unique design of logo
that will attract customers for buying the items of the company.

Nike will use different tactical tools for creating awareness through pricing strategies of the
company. It will offer discounts, gifts, offer credit facility to the customers so that, they will
purchase the products of the company. Company will use premium based pricing strategy and
value-based pricing strategy for deciding the prices of goods and services (Kasemsap, 2016).
Company will use different tactical tools for creating awareness through promotional strategy.
Nike will offer free samples to the targeted segment of customers at the time of first marketing
campaign. Nike will use various promotional tools like personal selling to the customers by the
sales force of the company. It will give advertisement in magazine, local and national
newspapers, social media platforms to promote the awareness of marketing plan as well as of the
brand of company. The products of Nike will be available at various retail stores at different
locations etc.

CONCLUSION
The above essay has described the meaning of marketing, fundamentals of marketing
process and stages of marketing activity of Nike, role of marketing mix in developing marketing
strategy of the company. Further, the Report has also explained role of marketing in creating
value for the customers of the company, role and impact of internal as well as external
stakeholders in marketing activities of Nike. Moreover, the Report has described tactical
communication tools that are used by the company for creating awareness of marketing strategy
of the company.