Marketing Orientation Report: Analysis of Nike's Strategies

This report provides a comprehensive analysis of Nike's marketing orientation, examining various aspects of its business strategy. The report begins with an introduction to marketing orientation and its significance, followed by a focus on Nike as a case study. It delves into customer context, including segment characteristics, brand awareness, and level of involvement. The report then explores the business context, encompassing corporate and marketing strategies, brand analysis, and competitor analysis using Porter's Five Forces model. Internal and external contexts are also examined, covering agency availability, stakeholder importance, communication needs, and socio-political-economic-technological factors. Key elements include DMU characteristics, financial constraints, organizational identity, marketing expertise, and agency suitability. The report highlights Nike's strengths, weaknesses, opportunities, and threats, providing a holistic view of its marketing approach. Finally, the report concludes by summarizing the key findings and implications of the analysis.

Marketing
Orientation

Table of Contents
INTRODUCTION...........................................................................................................................1
Assessment Task..............................................................................................................................1
Customer context ........................................................................................................................1
Segment characteristics ...............................................................................................................1
Level of awareness, attitudes and perception towards brand organisation ................................2
Level of involvement and perceived risk.....................................................................................2
DMU characteristic and issues ....................................................................................................3
Business Context..............................................................................................................................3
Corporate and marketing strategy and plans ...............................................................................3
Brand/ organisation analysis........................................................................................................4
Competitor analysis: It is a marketing and strategic assessment that helps to comparison with.4
Internal Context...............................................................................................................................5
Agency availability and suitability:.............................................................................................6
External context...............................................................................................................................6
Stakeholders and its importance .................................................................................................6
Communication needs..................................................................................................................6
Social, political, economical and technological restraints and opportunities ............................6
CONCLUSION................................................................................................................................7
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REFERERENCE..............................................................................................................................8

INTRODUCTION
Marketing orientation is the wider term in any enterprise that involves decision making
perspectives, market intelligence, strategic view, culture based behaviour position and customer
orientation aspects. As market place is ballpark of any industry that helps to increase in number
of customer and maintain profitability. Moreover, it is an approach which focuses on identifying
and meeting the needs and wants of customers and give satisfaction. The main purpose of this
report to understand the importance of market and what factors are includes in marketing (Boso,
Story and Cadogan, 2013). To better understand Nike has been chosen that is sports organisation
provides design, manufacturing, development, marketing all over the world and sale of footwear,
equipment and provides services at UK and Spain. The customer of UK and Spain are well
aware about Nike brand and get satisfaction to purchase products and services from Nike.
This report will covered different topics such as customer context, business context,
internal context and external context that will help to create a value for customers as well as firm
and give contribution to development of country.
Assessment Task
Customer context
Customer context refers a group of people who buys product and services from an
organisation and get satisfaction. Basically, it is creates a relationship between customer and
company through purchasing and selling of products and services as customer wants. Such as
Nike is a multinational company that focuses on customer by providing products and services to
Spain and UK's customer. It provides a branded products that help to create a customer loyalty.
Segment characteristics
This contains a classification of market that helps to divide that market in to characterise
such as interest of customer, age, gender, lifestyle, rituals etc. Nike also divide the market in to
segment like demographic, geographic. Psychographic and behavioural that's brief discussion is
given below-
Demographic: Nike provides sports shoes and other products as according to age, race,
gender, family size, income level and religion to Spain and UK's client that helps to increase
productivity as well as sale of company (Lamore, Berkowitz and Farrington, 2013).
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Geographic: Nike gives its products and services world wide by following geographic
segmentation that involves area like as countries, region, cities and international region. Nike
focuses on Spain and UK's client and sale their products.
Psychographic: Nike focuses on products design and marketing by remembering
customer's values, traits, interests, attitudes and lifestyle. By following this it can get customer
needs and taste that will helps to produce that kind of materials.
Behavioural: Nike focuses on customer's aims like buying habits, spending habits and
usage habits that helps to increase business activities by selling branded items at UK and Spain
market place.
Level of awareness, attitudes and perception towards brand organisation
Brand awareness: This means a logo or image that helps to recognise or recall a brand.
Such as Nike a well known brand that focuses on advertisement, brand management and
customer behaviour. It involve high level of awareness that try to grow large market share.
Attitudes: This involves opinion or views of customer regarding a product and service
through market research. Such as Nike states what people think about product and its needs
(Levine and Zahradnik, 2012).
Perception: This is a special result of client's experience which is used by customer. It
starts with awareness and end with loyalty of brand. Nike is a popular brand that create a value
and perception for customer.
Level of involvement and perceived risk
Level of involvement: This contains stage of process information and amount of importance at
the time of purchasing products. Such as Nike focuses on customer's expectation that involves
product should be socially, economically and personally that helps to influence customer.
Perceived risk: This is kind of risk that arises during business activities when a client perceives
that a buying decision may create a loss and hazardous situation (Types of perceived risk. 2019).
The manager of Nike describes types of risk that has chances to be occur-
Functional Risk: This risk is associated with functions of an enterprise such as Nike
manufacture sports shoes as according to customer needs and age, it might think “will this shoes
provides comfort to customer? It relates with product's features, benefits and perceived regarding
product's quality.
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Physical Risk: This means a customer or consumer might be confused about product
safety in order to use a particular product and service. Such as first user of Nike might be
confused regarding product's quality and safety.
Time risk: This means a customer may be worried about time consumption during
purchasing a product or service. Such as customer of Nike might be worried about consumption
and using time of products.
DMU characteristic and issues
DMU is decision making unit is a collection of people and team who participate in
purchase decision process. Such as Nike focuses on how much units should be produced in a
hour or day (Levine and Zahradnik, 2012).
Characteristics
 It is a ongoing process that involves planning, organising, staffing, coordinating
and controlling.
 It contains careful analysis and evaluation of potential alternatives and outcomes.
 This is responsibility of management executives at different level.
 This is used on the basis of past experience and present information.
Issues
 Available resources and time period.
 Manufacturing place and other facilities.
 Change in customer fashion and taste.
 Changes in tax rate and import duty.
Media usage
It states media consumption or diet that means total of entertainment and media
information which is taken by individual or group of people.
Business Context
Corporate and marketing strategy and plans
This refers Corporate planning marketing strategy that helps to define goals and objective
s of a running business and focuses on coordination of functional strategies like as human
resource management, marketing, operation, finance, etc. to accomplish company's objectives.
Such as Nike produce various products with the help of marketing strategy that describe which
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product are high in demand and manufacture that kind of product (Urde, Baumgarth and
Merrilees, 2013).
Brand/ organisation analysis
This is a process that contains strategies of brand development, evaluation, plans, image,
estimates and metrics that helps to make different from others. Such as Nike is well known brand
and its make marketing strategy that increase number of consumers. Its analysis is discussed as
below-
Strength:
 Brand recognition
 Influencing marketing strategy
 High product quality
 Strong customer
 Capacity to adopt new technology
Weakness:
 Depend on overseas production
 High prices compare to other industry
 Currency exposure
 Decreasing market share
Opportunity:
 Entry in new market
 Growing market for women
 Develop brand image and fashion
Threat:
 Revenues depends on consumer's
income level
 Fluctuation in currency
 Perfect competition
Competitor analysis: It is a marketing and strategic assessment that helps to comparison with
different industry by making strategy. Such as Nike make marketing strategy and compare with
other sports industry who also makes same kind of product like Adidas. Nike follows porter's
five model to make competitive analysis-
Competition Rivalry: This states how Nike maintains its share in sports footwear marketplace
to compete with other organisation. Nike has high market growth rate due to low market
penetration and alteration.
Bargaining power of buyer: This contains low switching cost and small size of buyers that
might be affect Nike's business. In this case Customer has power to purchase products at low
cost as they want (Wang, Chen and Chen, 2012).
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Bargaining power of Supplier: It consider high supply and large number of Buyers that can
affect Nike's business. Such as if suppliers are limited at market and buyer are more then Nike
can sale its products at high prices which can impact on its profits.
Threat of Substitutes: This means a substitute of products is available in market that can
infuence Nike business. Such as Nike manufacture comfortable sport shoes same products are
also produced by Adidas at low cost that can impact on Nike's business.
Threat of New entrants: A new entrance of other industry may be disrupt Nike's business
activities. Such as a new firm enter at market who manufacture new products at low cost than
Nike, as result its has chances to reduce profits.
Internal Context
Financial constraints: This includes products and services that can not be purchased by a buyer
because lack of money. Moreover, in constraints a person get bound to do something which do
not like.
Organisation identity: This includes distinctness image of company's product such as brand,
purpose and culture of company that help customer to get aware and recognise the product's
quality. Nike has well known product identity that helps to create a brand image and customer
loyalty.
Culture, values and beliefs: Cultural values contains core ideas and principles that helps to
entire a business and beliefs describes judgement of conviction that needs to be true in order to
run a business. Such as Nike create a value for customer by providing better products and
services and make a profitable decision.
Marketing expertise: It means a person who has enough knowledge and skills about market
place and helps to increase sale by using skills is consider in market expertise. For instance, the
marketing manager of Nike company has high level of skills and experience to advertise its
products and increase sale turn over.
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Agency availability and suitability:
Agency availability: This means products and services which is provided by an organisation are
available for 24*7 hours or not. Such as Nike provides products and services world wide that is
available for 24*7 hours. It has various Agency which is also available for whole time that
means any one can purchase at any time through online.
Agency suitable: This means Nike manufacturing products that is suitable for customers
according to fashion, income level and product quality.
External context
Stakeholders and its importance
Stakeholder are person who can affect enterprise's activities, objectives and policies such
as creditors, directors, government and employees. Stakeholders are important in any
organisation because it provide valuable strategy and goals for project direction. Nike also has
key stakeholders who participates in business activity and get financial information in order to
know profits.
Communication needs
It is very needed for each and every organisation that an enterprise should have proper
communication with stakeholder and employees that will helps to know the problems of
company and will suggest strategy to solve the problems. Such as manager of Nike share new
technology and financial information with stakeholder that helps to maintain profits as well as
create a trust among stakeholders and employees. Better communication helps to build
relationship outside of work meeting, provide right time and right guidance in order to make
profits.
Social, political, economical and technological restraints and opportunities
Social: Nike manufacture product and services according to customer's choice that helps to
attract customer and increase sales.
Political: Nike's business can be affect by increasing tax rate through government as result it has
to pay more tax amount and influence its business.
Economical: As increasing rate in inflation may impact on Nike's business as result it has to
purchase raw material at high cost and need to sell at increasing rate that will reduce sale because
customer would not be ready to pay extra amount (Wang and Miao, 2015).
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Technological: If any new technology arise at market place that can affect Nike's business such
as it can increase its production and number of sale by using advertisement and new innovative
equipments that will helps to increase sale.
CONCLUSION
From above mentioned report it has been concluded that marketing plays an crucial role
in any enterprise that helps to increase sale through advertisement. This report covered customer
and business context that define market segmentation, level of awareness, decision making unit,
porter five model, brand analysis and marketing strategy that helps to create a brand image and
customer values. Moreover, this report covered importance of stakeholder, communication
needs, organisation identity, marketing expertise and financial constraints that helps to solve
financial problems and maintain profits.
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REFERERENCE
Books and Journal
Boso, N., Story, V. M. and Cadogan, J. W., 2013. Entrepreneurial orientation, market
orientation, network ties, and performance: Study of entrepreneurial firms in a
developing economy. Journal of Business Venturing. 28(6). pp.708-727.
Lamore, P. R., Berkowitz, D. and Farrington, P. A., 2013. Proactive/responsive market
orientation and marketing—research and development integration. Journal of Product
Innovation Management. 30(4). pp.695-711.
Levine, H. and Zahradnik, A. G., 2012. Online media, market orientation, and financial
performance in nonprofits. Journal of Nonprofit & Public Sector Marketing. 24(1).
pp.26-42.
Levine, H. and Zahradnik, A. G., 2012. Online media, market orientation, and financial
performance in nonprofits. Journal of Nonprofit & Public Sector Marketing, 24(1),
pp.26-42.
Urde, M., Baumgarth, C. and Merrilees, B., 2013. Brand orientation and market orientation—
From alternatives to synergy. Journal of Business Research. 66(1). pp.13-20.
Wang, C. H., Chen, K. Y. and Chen, S. C., 2012. Total quality management, market orientation
and hotel performance: The moderating effects of external environmental factors.
International Journal of Hospitality Management. 31(1). pp.119-129.
Wang, G. and Miao, C. F., 2015. Effects of sales force market orientation on creativity,
innovation implementation, and sales performance. Journal of business research.
68(11). pp.2374-2382.
Online
Types of perceived risk. 2019. [Online]. Available through:
<https://www.marketing91.com/perceived-risk/>
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