Marketing Case Study: Analysis of Nike's Organizational Operations

This case study provides a comprehensive analysis of Nike's marketing strategies, delving into the core concepts, principles, and their application within the organization. The report examines various marketing terminologies, the role of marketing strategies in achieving organizational goals, and how Nike utilizes marketing concepts in its daily operations. It explores the relationship between marketing functions and other functional areas, such as production, sales, and ethical considerations like pricing, privacy, and market manipulation. The study also highlights Nike's approach to customer satisfaction, product innovation, and brand awareness through marketing and promotional tools. Furthermore, it discusses the application of marketing principles like price and product, and how Nike adapts to societal marketing concepts, including environmental and social welfare initiatives. This case study offers valuable insights into how Nike maintains its market position and customer loyalty through effective marketing practices.

Case Study Analysis of Nike

Table of Content
INTRODUCTION.................................................................................................................................3
TASK....................................................................................................................................................3
A. Concept of marketing and terminologies......................................................................................3
B. Role of marketing strategies..........................................................................................................5
C. How marketing concept and principles are used in Nike’s daily organisational operations..........6
D. Relationship of marketing functions to other functional areas......................................................7
Conclusion.............................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Marketing is that process where the company sell their products and services to
numerous customers to retain in market for a long period of time. Without customer
satisfaction the company cannot retain for a longer period in market. It the responsibility of
marketing manager that to conduct the proper market research where they can find out the
requirements of customers (Jobber and Ellis-Chadwick, 2012). It is also important to
understand the proper marketing concept where it includes marketing principles etc. which
helps the business firm to achieve their targets in stipulated time period. Here in present
report the case study of Nike has been discussed whereas this company has made lots of
efforts to gain high position in competitive market. Further, various techniques of marketing
essential has been applied which help the company to attract customers especially who are
belonging from sports field.
TASK
A. Concept of marketing and terminologies
Marketing is a process which is related of customer need identification, create product
awareness and provide greater value to the customers (Pepe, 2012). It can help to provide
long term success in a effective manner. The marketing concept is the philosophy that urges
organization to focus on its customers’ needs and demand. Analysing these needs and make
their decision which can help to satisfy such needs in a appropriate manner. There are various
marketing concepts which evolved over a period of time which can be used by the Nike.
These marketing concepts as given below:
Production concept: This is one of the major concepts which were introduced in
1940's. It is belief that the customer would always acquire products and services at the lower
price. This production concept is focused on the production and sales. There are various
countries such as India and China where labour charges is cheap and easily available. The
production of goods and services can be maximised when the cost is reduced which can leads
to increase productivity and efficiency. In the context of Nike, the production marketing
concepts can be used in their operations. They can open their production facilities in to Asian
countries which can help to reducing product cost. Because there are various customers
which required sports products at the lower cost. Apart from that are various emerging
market which can provide a good opportunities for the cited business organization is to
provide their product to them (Hultén, 2011). It can also helps to increase in the economies of
scale which can help to provide competitive advantage over its rival companies. It can help to
attain their long term objectives in a effective manner.
The sales concept: This is another significant marketing concepts which is focused on the
product selling. In this approach the a business unit can offer their products and services to its
customers in order to use large scale promotional and selling efforts. This is basically based

on the direct selling where sales persons can attract their customers and increase sales on the
company. There are various goods and services which can be used such methods in order to
selling their products and services in a effective manner. These business units are generally
used aggressive selling and meet their targets in a specific time period. The focus in the
selling approach is more on selling the goods of a firm to its customers without
comprehending the market needs and increasing sales transaction rather then customer
relationship (Lusch and Webster Jr, 2011). As per the given case study this approach can not
applicable in the today' market.
The Marketing concept: This is one of the key approaches in today's business environment.
A marketing concepts is defines the strategies and tactics which can be used by the
companies to market their products and services. The main aim of this concept is to promote
products and increase awareness about the products to its customers. In the context of Nike
this concepts can be applicable in their respective market. In this approach the cited business
firm is required that to identify customer needs so that they can meet these needs. For
example, Nike is expert in the various types of products such is football shows, basketball
shows, and running shows. They having own research and development department which
innovate and use technology aspects in their products (Zenker and Martin, 2011). It can help
to increase customer satisfaction in a effective manner. In the sports field there are lack of
innovation in the sport equipment and products which can affects individual and sports
person performance. Apart from that they can also use various marketing and promotional
tools which can be concentrated on the customer specific needs and create their awareness.
Societal marketing concepts: This is one of the modern concepts which can be used by the
various business organizations. This approach is related with the all production and
marketing activities are smoothly running earn profit and social welfare. A business firm is a
part of society there fore they also contribute to the community in terms of social welfare and
well-being. According to the Nike case study the cited business organization is also apply this
concept. There are various activities and programmes which can be conducting by the Nike.
For example, they create health awareness and promote sports which can provide a healthy
life to the public. The marketing department also promoted women sports through proving
financial and resources support which can increase women empowerment in a effective
manner. Today customer is also aware towards the environment, climate and wild life. Nike
can launch various programmes such as sports fair and events where they can promote and
protect environment and reducing the harmful impact on the environment. They also can use
product and components which are less harm to the environment (Grönroos, 2011). So they

can set a sustainable development model and create a ideal image in the public which can
help to attain their long term goals and objectives effectively.
B. Role of marketing strategies
The manager of Nike has to properly analyse the marketing strategies which help
them to achieve the goals of organisation. A marketing strategy has to look upon all the areas
of organisation where they have to ensure that all the departments are aware about other what
is doing. The marketing strategy should be drawn in such a manner in which maximise the
goals and objectives of the organisation. The manager has to integrate proper marketing
strategies so that it will be beneficial for the organisation to take better decisions regarding
the specific marketing strategies. It takes a lot of time and efforts of organisation to develop
and maintain the proper marketing campaign so that large number of customers can be
attracted. The marketing manager of Nike has to properly understand the marketing strategies
so that they can easily identify their roles (Lefebvre, 2011). The following are the role of
marketing strategy which helps Nike to achieve their targets and provide the quality of sports
products to athletics.
 To help the customers problems by providing appropriate solutions – While making
the marketing strategies in proper manner it help the company to solve the issues of
customers by; offering exclusive products and services to make their lives easier,
listing their problems and replying them with in time period etc. The company can
also create campaign in which large customers will attract can ask problems.
 Using big data to target the audience or customers – When the managers has
collected the big data from different sources it help Nike to target the audience who
are in the need of sportsman products. Generally this company target the athletics
young man and women where they can easily sell their products and services.
 Collaborate with influencers – Marketing strategy will help the managers to attract
the new customers and increase their brand awareness by collaborating with other
top influencer of same industry (Palmer, 2012). By allowing these influencers then
managers can share inspirational content and Nike will also able to tap into new
customers.
As there are many issues in ethical marketing but it is responsibility of the managers to
manage them in appropriate manner. So through this they can easily satisfy the needs of
customers. Ethical marketing should ensure about to provide the accurate products and
services to meet out with the customer’s needs. There are some ethical consideration which
have to be considered by marketing departments in order to achieve the objectives of Nike
company.
Safety – The products and service which are provided by company does not harm to
customers. An ethical marketing strategy does not motivate unsafe application of products
which are provided by the business entity. If any products contains hazardous harm then it is

the responsibility of whole organisation to give proper instruction to customers that how to
avoid them.
Market manipulation – The market ethical strategy of Nike does not involve in any
manipulation in market. Ethical market strategy should analyse those information in which
they can target the customers that how many of them are interested to buy the products. On
other side, marketing manager has to ensure about the adequate supply of product and
services. If there is shortage in driving the demand then it could be considered as unethical.
Pricing – Pricing s another ethical marketing strategy which help the organisation to
derive that how many customers will come in to target the market especially sports man
whether man or women (Arnold and Paulus, 2010). In contrary how much they are willing to
pay the sportsman products. If the prices are set beyond the level of strategic plan then it
could be considered as unethical.
Privacy – Nike company is already engage in to collect the data of individuals in which
they can target the new customers. They use these data in such a manner which influence the
product pricing and design. The information or data which has been collected by managers
should be confidential and respect the individual privacy. If the managers have collect the
information without the consent of customers then this may lead into the unethical approach.
C. How marketing concept and principles are used in Nike’s daily organisational operations
Marketing is that fundamental process which evolves in society for their needs to be
exchange in terms of consumption value. Nike company is already know that which
consumers they have to targets. This company provides the products such as footwear,
apparel, accessories and equipment’s. As every company have his/her unique techniques or
strategies which are working upon the basic few principles of marketing (Krain, 2010). The
basic principles of marketing are as follows which has been used by Nike to retain in market
for a long period of time.
Price – This principle show that how the manager of Nike will target the customers
that who are ready to willing to pay the price at high rate. Through this the company can
evaluate the price to maximise their profits. The price of products of Nike is generally so
every person cannot afford to use it. If the prices of the product are drop then it ultimately
increase the demand and cost per unit will also decreases (Liedtka, 2011). Nike is trying to
provide all the products and services at reasonable rate so that every sportsman even
customers can use these products. It will give benefit to company to retain customers for a
longer period of time.
Product – The products may be tangible or intangible for the customers. The manager
of Nike can evaluate the product by the degree to which they are satisfying the needs of
customers. The products which are provided by the company are equipment, apparel,
footwear etc. Especially these products are related with the sportsman needs. Nike market is
generally called as in sports filed that ‘Just do it’ in attitude. This company sold the quality of
products so it is also easy for them to attract large number of customers and to beat other
companies in global competitive market. The company has sold ‘brown show’ which has

shown hiking and there are so many customers who are crazy about this particular product.
This product is come under the athletic sneaker business. As there are so many competitors of
this company and faced numerous obstacles so this organisation had developing the new
product lines an also creating the sub brands in address all the issues which are facing by
them (Ryan and Mizerski, 2010).
Place – The managers has to make proper strategies so that they can set appropriate
distribution channel in which they have to target the customers. For every company
customers are very important if business entity does not try to reach with the needs of
consumer then they can maximise their profits. The proper distribution channel is significant
part for the organisation which involved the structure of warehouse, shipping or sale point.
This company has made large amount of profits outside United Kingdom approx. 48% and
his current sale is from rest of the world is about 38%. The retail store of this company is
opened everywhere and target the customers also in strategic manner. The distribution
channel of this company is very goods and it became problem for competitors that how to
target the customers of this company.
Promotion – This principle is very important to retain the customers for a long period
of time. It involves spreading the awareness about the brand by using so techniques of
promotion such as advertisement, sales promotion, direct selling and personal selling. Nike
spends hundreds of million dollars each year on promotional events and attending the lots ads
to attract large number of customers. The promotion technique of Nike is hype and promises
which consistently delivering real value for customers. The main aim of Nike is not to
promote the sales but to promote the sport benefits for all individuals. There are many
campaign of Nike such as ‘Move your generation’, ‘Move More. Move better’ and many
more (Kobayashi, 2012). For changing of generation gap the managers has to set their
promotion techniques so that they can easily attract the customers and retain them for a long
period of time.
D. Relationship of marketing functions to other functional areas
In order to achieve the goals of the company it is very important to make coordination
with other departments also. The some other functions are production, sales, accounting and
many more. In this organisation the managers are making the sturdy relationship with other
departments also so that they can easily target the customers. For retain in global competitive
market it is very important to make strong relationship (Wolf, 2011). As there are many
stores of this company so it the major responsibility of higher authority to coordinate with all
departments. Whenever the new employees join this company then managers has to provide
them a proper training and development programme which will also increase their skills and
knowledge. The training should be provided according to the needs of employees so that they
can quality of services to customers. The marketing functions are carried out by a specialised
department through which they are satisfying the needs of numerous customers. They have to
develop effective marketing plan and it should be link with the other functional areas of
organisation. If any conflicts are arises then it is duty of higher authority to resolve them in
time period by providing an appropriate solutions. There are following functions in which

marketing departments need to closely with them in order to achieve the objectives of Nike
company.
Operation management production – The manager of marketing department has to
set deadlines which should stretch out the capabilities of production departments. The
marketing manager has to ensure about the adequate research is done to satisfy the current
and future requirements of customers. The products which are manufactured by the
production department should be in proper quality and design which should laid down the
customers need (Marketing and its relationship with other business activities, 2017). They
have to also ensure about the product which they have manufactured should not contain any
defective items and does not harm to the individual health.
Finance department – The finance department has an overall structure of the
organisation in which they operates all the business objectives with in its financial
capabilities. The marketing manager has to ensure that there should be an adequate budget
which will help them to meet the requirements for the promotion, research and distribution.
In Nike company, all the departments have to work in allocated resources so it will also not
produce environmental wastage. The marketing department can build more market share and
increase the sales volume of product and services only with the help of finance department.
Human Resource department – The marketing department of Nike is also need to
work closely with this area. Through this they will ensure about the skills of staff. It will help
the manager to build a strong sales team in order to attract the large number of customers. As
it is the responsibility of both departments to provide proper training and development
programmes to new and existing employees so that they can also provide quality of services
to customers. The marketing department has to coordinate with human resource department
so they can appoint potential candidate and should meet out with all the obligations of
employees.
Conclusion
As per the above mentioned report it has been concluded that marketing having a great
role in the growth and development of each and every business unit. The report is discussed
about the various marketing concepts which can be applicable in the Nike. It has been also
explained about the role of marketing strategies which can help to attain cited business unit
long term goals and objectives. Marketing approaches and principles can also help to the
operational activities of the company. In the end, the report also described the relationship of
market functions other functional areas of the firm. So that they can attain their long term
goals and objectives in an effective manner.

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Online
Marketing and its relationship with other business activities. 2017. [Online].
Available through: <
http://www.sanandres.esc.edu.ar/secondary/Marketing/page_14.htm>. [Accessed
on 9th April 2017].