MOD003507 - Marketing Principles: Adidas Promotional Strategies

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This report delves into the marketing principles and practices employed by Adidas, a leading sports equipment retailer. It examines the development of Adidas' promotional activities, including customer-facing touchpoints, external spaces like billboards and print media, digital platforms such as social media and websites, and third-party endorsements like news articles and analyst reports. The report further explores the application of marketing theories, specifically the AIDA model (Attention, Interest, Desire, Action) and the communication process model, to understand how Adidas effectively captures customer attention, generates interest, cultivates desire, and drives action. The analysis provides insights into Adidas' strategies for brand awareness, customer engagement, and achieving a competitive edge in the sports retail market. Desklib offers a variety of solved assignments and past papers for students.
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PRINCIPLES AND PRACTICES
OF MARKETING
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TABLE OF CONTENTS
OVERVIEW...................................................................................................................................3
TASK 1...........................................................................................................................................3
Development of promotional activity........................................................................................3
TASK 2...........................................................................................................................................9
INTRODUCTION..........................................................................................................................9
AIDA marketing theory...........................................................................................................10
The communication process marketing theory........................................................................11
CONCLUSION............................................................................................................................13
REFERENCES.............................................................................................................................14
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OVERVIEW
Marketing is the key element of organizational success, because it plays vital role in
term of increasing profitability, productivity and performance level of a brand. Principles of
marketing drive the attention of individual towards conducting effective practices that increase
profits margin of organizations. The current assignment will be based on Adidas, which falls
under the category of leading sports equipment retailers in the world. The study will define the
promotional activity of company and elements that encompasses within this practice.
TASK 1
Development of promotional activity
It is quite important for a company and their marketer to focus on development and
implementation of promotional activity systematically, which made them able to promote
venture all over the world successfully and gain profit through it in effective manner. This form
of activity may cover certain components as approaches, which marketer may take into their
consideration appropriately.
There are various types of promotional strategies that helps business grow in the current
scenario. Adidas as being an international organization focuses on several different segments to
obtain effectual outcome through attracting customers and other stakeholders. There are
different types of marketing and promotional strategies adopted by firms for achieving
customers’ touchpoints, external platforms, digital method of advertising, etc.
Customer Facing Touch points-
It is concerned with the points within which customer get connect in order to acquire the
products and services. In addition to this, Adidas pay attention on building effectual stores,
official website, offices, reception areas, etc. to connect with customers. In order to interact
with customers Adidas has created distinctive image in the mind of prospects to attract them
towards the stores established in different areas. Organization has organized its offices in every
region it operates in a systematic manner for giving positive experience to customers.
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In the current scenario competition has increased and which has forced firm to develop
the strategic plan for increase its pattern of making interaction with customers. Adidas pay
attention on identifying needs of its targeted segment and execute those needs in its advertising
methods like print media, TV ads, etc. to enlarge the attention of clients towards buying. There
are several situations in which firm participants as sponsors to increase sales of established
platforms. In order to cope up with changing needs of customers Adidas is altering pattern of
meeting buyers’ requirement. It is partnering with local stores to enhance reach of company
with customers. Whenever clients see any information regarding the company in an innovative
manner get attracted towards brand. Adidas is giving focus on increasing its retail stores,
emergence on business based platform, etc. to incline focus on enhancing communication with
customers.
Customer touch points play vital role in success and excellent progress of companies
such as Adidas, because it enables customer to get in depth information about brand by using
several approaches as discuss above. By using their own stores in market, organization may
effort to gain the attention of potential buyers, because it made firm capable to give appropriate
information to individual visitor about company offerings. It can be said that organizational
stores it the best method to promote venture, retain customers through it and increase
profitability. Firm may take action to advertise its range of collection in front of people by using
key skills and knowledge of individual worker who may able to do so in term of providing
accurate data about current offerings in term of discount and information about further benefits
that potential customers may gain becoming a loyal buyer. Recently, brand may has 450 outlets
and 220 Reebok stores. This customer touch point may provide benefit to retain profitable target
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market who may take interest at high extent in purchase of firm items and also able to conduct
word of mouth promotion, which help to increase number of visitors visit at stores that generate
sales and contribute to maximize customer base.
External spaces-
This strategy refer to procedure of advertising brand and its products worldwide, by
using key external approaches such as billboards, print media and templates. For example,
ASDA may utilize billboard marketing, which consider as process of using a wide scale print
advertisement to advertise firm and its existing offer that help to gain the attention of new
customers and aware existing about it, which is quite essential for organization to do so. It gives
organization chance to show its existence in the market and capture the eye of local people in
nations where it may establish outlets. It is a kind of wide outdoor or external space advertising
format, which usually placed and found in high traffic areas such as highway and main street of
market to grab the attention of individual person (Saputra, Subiyantoro and Setiawan, 2020). It
is one and only source where marketer may get full power to control everything related to
promotional activity that they effort to conduct through it.
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By using billboard for advertising purpose, Adidas may gain several advantages such as
it may get freedom to be innovative and present what it seeks to offer to target customers. It
may organization chance to be creative by making effective and influencing design of products.
Furthermore, it may allow firm to stand out from competition in market by enforcing external
space that work effectively. Along with this external space or source, marketer may take another
method into their consideration and that is print media through which they may promote brand
totally and effectively. It is one of those oldest forms of marketing that marketer use under
promotional plan or activity in the context of ASDA. Print media encompasses newspaper,
magazines, templates and other types of printed journals that provide a lot of benefits to the key
stakeholders of company such as investors, partners, workers, managers, etc. These two external
spaces play crucial role in continuous progress and success of its venture, which in return may
support to increase profitability and generate great revenue.
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Digital platforms-
Marketing is a wide term because it covers several effective approaches that has been
utilized by many companies whether it is small or large according to needs and budget. Here, in
the context of Adidas, marketer may utilize digital advertising platforms, just to ensure that
brand awareness may generate worldwide, and they gain advantages through it in term of
increasing sales and revenue. In form of platforms, they may use social media and websites. For
example, social media is one of those effective marketing approaches that utilized by several
brands and entrepreneurs. In term of social media, marketer use Instagram and other sources to
achieve their strategic goals and set objectives. In recent time, instead of gathering information
about new service, products and ventures from local sources, people in bulk may use online
source such as chosen one. It gives them chance to known what brand may tend to offer in the
future and attempt doing too currently. Just because it has used by everyone, marketer may grab
chance to reach individual customer easily and quickly. By using social media marketing
sources, they may generate more inbound traffic and enhance search engine rankings.
Furthermore, they may effort to create official website of brand where necessary
information may mention in understanding way that customers may understand easily and take
decision to purchase quality products to Adidas. It can be said that the organizational website is
the first point of communication between venture and potential buyers, which connect both of
them together in term of selling and purchasing items. Great web design may enable marketer to
reach more shoppers and earn great revenue in term of increasing profits margin (9 Best Internet
Marketing Strategies for Growing Your Business, 2021). With the help of website, firm may
determine who many people view its site and take interest in brand products purchase by
considering number of viewers. Along with promoting business, they may communicate with
people as well in term of taking their reviews after and before selling items that accessible in
varied categories such as sports shoes, t-shirts, etc. It may support to generate excellent brand
awareness and allow reaching at top in the retail world.
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Third parties-
It defined as process of using those methods and techniques that also support in similar
way and contribute to advertise brand appropriately. In term of third party, marketer may
include news articles under their promotional activity that they may conduct in regard to
Adidas. It is the most common and affordable approach of marketing that also used by many
firms. It is a piece of factual information that marketer may effort to provide everyone
(Giyazova and Zayniev, 2020). It enables company to reach at target market by generating its
goods awareness through set of content that help to influence people and affect their decision-
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making procedure. New article may also known as article marketing, which is a common form
of brand promotion in which marketer may write and describe short article to range of formats
such as forums. In term of strategy, they use news article and aware people about what Adidas
may seek to offer according to current market needs and expectations of its customers. By using
this source, they may grab chance to save money and efforts as well, because news article
marketing is cost effective approach.
Moreover, analyst reports is another method that marketer and marketing department of
Adidas may take into their consideration to make better than for advertising goods that in turn
increase sales and increase profitability more than last year according to an analyst report. It
usually written and used to offer direction to stakeholders such as marketing teams whether they
may focus on areas where improvement is required to grow venture continually and get
opportunity to maximize profitability more than key rivals that operate in same sector and
attempt to develop strategic plan. It may drive the attention of marketer to concentrate on
important aspects, in term of considering those items which sales may less than the other
products. It enables them to collect fact data and focus on improving essential things that help to
build strong and most influencing brand image in retail market as opposite to other sports
brands. Each approach they may use systematically and effectively.
This kind of reports give data about financial aspect of company that help management
to understand where improvement is needed and how to improve particular thing appropriately
by using effective methods and forming tactics (Kim, Ryu and Yang, 2021). Marketing
department may use overall data that they may collect through analyst report create by
experience and knowledgable candidates by conducting a lot of hard work, market research as
well as internal analysis of brand. It helps to make further planning and take decision to use
appropriate methods such as marketing tools and other techniques as it depend on in the future
requirement or circumstances.
TASK 2
INTRODUCTION
Principles and practices of marketing play important role in achieving success through
adapting systematic approaches. Promotional strategies refer to those methods that help in
increasing awareness about the firm’s product. In current scenario, there is requirement of
giving emphasis on marketing theories to increase reach of company with customers to beat cut
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throat competition prevailing in the sector (Kurniawan, Shall and Meidian, 2021.). The present
report will demonstrate two types of marketing theories in the context of selected organization
Adidas which operates in sports footwear industry.
AIDA marketing theory
These particular model of marketing is concerned with four steps which includes
attention, desire and action. Adidas continuously pay attention on increasing attention of
customers through connecting with ranked on top positions celebrities and customers. In order
to attract with clients, it uses the tags like save up to 50% to get captured by new segments.
Adidas implement this hierarchy in effectual manner.
Attention
The first sept of AIDA hierarchy is to get the attention of customers through advertising
and promoting brand. In this firm Adidas identifies the suitable approach to attract buyers to
fulfil objective of company regarding increasing sales and productivity. It is concerned with the
first interaction that firm has developed among its targeted audience (What is AIDA model in
marketing ? 2021). For this purpose, Adidas makes commercials that has famous people’s
appearance which highlights the characteristics of sportswear and garb the attention of
customers. This step of marketing theory positively impacts image of brand which enables frim
to get familiarize with the buyers.
Interest
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It is associated with generating interest of people in the benefits provided by
organization to have appropriate advantages. Adidas adopts various tactics to develop interest
among customer so that goal of being leading firm in industry can be attained. For his purpose
Adidas concentrates on creating interest through offering benefits like discount of 50% to have
sufficient ability to get connected with buyers (Lorente Páramo, Hernández García and
Chaparro Peláez, 2021). Other types of advantages that organization provides comprises free
delivery, buy one get same free, etc. Developing interest in the market is very crucial to get
longer terms sustainability. It as well focuses on the graphic image, including behind the scenes
coverage of advertisement and recoding perception of athletes about their personal experience
with brand.
Desire
Adidas try to create an emotional connection between the products and customers via
highlighting the characteristics. With help of this particular marketing theory Adidas delivers
special message that are very motivated and encourages targeted audience to have an emotional
connection with company. This practice helps in achieving loyal as well committed customers
that boost performance and progress of organization. In its promotional practices it pays
attention on reflecting fast speed and handsome people which creates desires of getting those
traits in personality through adopting shown product in advertisement.
Action
This is final step for which firm create awareness that leads to interest and then desire
for making people to buy products and services (Fortenberry and McGoldrick, 2020). In order
to achieve the action of making customer buy products offered through highlighting brand
name. it helps in increasing sales through executing effectual last actions that can make
customer happy to make purchase.
The effectiveness of this strategy can be measured by financial key performance
indicator that is reflected in terms of sales, profitability, etc. which is enforced by AIDA model.
It can validate that firm’s sales has 21218 to 20195 has inclined. It helps in meeting the
objective of getting higher revenue through selling more.
The communication process marketing theory
Communication process refers to utilizing different modes and tools to get connected with
customers to deliver essential information. It can be exerted by firm through utilizing
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advertising, direct & digital marketing, public relation, personal selling and sales promotion.
The objective behind utilizing this specific trait is to get the ability to have proper delivering of
information to increase brand awareness (What is marketing communication mix? 2021). Adidas
implements these course of actions in its communication mix plan.
Personal selling
It has presence in the personal sales efforts providing stores to fulfill its objective of
increasing customer awareness. Adidas focuses on explain its staff about better experience
providing through suggesting them suitable products that increase client satisfaction (Suharko
and Melinda, 2021). Personal efforts regarding each customer through offerings special
discounts according to their level of buying can help in creating good competitive advantages as
compared to buyers.
Direct marketing
This approach is widely taken into consideration which is can be exerted by sending
email with specifying needs and personal information of customer that drag the attention.
Stronger relationship is set by participating in college, sponsorship programs. Adidas get the
ability increase impact on customer in positive manner so that sales can inclined.
Public Relation
It is important part of communication mix that provide assistance in maintaining good
relationship with clients. Adidas utilizes this on large scale by using green technologies and
workshops & participates in charity as well sponsorship based events to have significant impact
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on both existing and potential consumers. PR helps in achieving KPIs established regarding
customer satisfaction, engagement, etc.
Social media-
In term of communication process, marketer may use this theory which encompass
varied elements and social media is one of these. It may help to promote venture quickly at
global level and enable marketer to obtain positive outcomes in term of generating excellent
web traffic, which is quite tough to generate for any brand in competitive business environment,
where each company may give competition to other for gaining benefits and current growth
chances. With social media sources, marketing teams may grab opportunity to interact with
potential customers and get information about their needs. It also helps to collect information
about how people perceive brand and take decision to buy its item in exchange of money, even
company may charge high because it offer quality goods that individual may prefer to purchase.
Adidas utilizes KPIs such as operating profit, employee assessment, average inventory,
etc. to measure performance in effectual manner. Outcome derived from both mentioned
strategies can be done by client retention rate that has been increased by adapting 40
communication channels with mixture of 16 promotional strategies as compared to competitors
prevailing in market. Mentioned course of action helps in attaining the objectives in effectual
manner to derive the positive outcome to gets sustainability and profitability in industry. These
mentioned course of action helps in achieving the objectives like increasing conversion rates,
profitability, customer satisfaction, etc.
CONCLUSION
On the basis of above discussion, it has been concluded that by using effective marketing
theories and approaches, marketer has gained competitive advantages in term of increased sales,
profitability and customer base. They have generated revenue more than key competitors by
using effective techniques to communicate to target customers who are interested in purchase of
quality items from well-known and most trustable sports companies in the business world.
Marketing department has utilized suitable methods that enabled them to give tough
competition to rivals and gained further benefits. Furthermore, by summing up above analysis,
it has been summarized that organization has gained the attention of profitable customers and
retained them by communicating in the effective manner.
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REFERENCES
Books and Journals
Fortenberry, J. L. and McGoldrick, P. J., 2020. Do Billboard Advertisements Drive Customer
Retention?: Expanding the “AIDA” Model to “AIDAR”. Journal of
Advertising Research. 60(2). pp.135-147.
Giyazova, N.B. and Zayniev, A.A., 2020. Types of marketing communications and their
classification. In International scientific review of the problems of
economics, finance and management (pp. 32-38).
Kim, K., Ryu, D. and Yang, H., 2021. Information uncertainty, investor sentiment, and analyst
reports. International Review of Financial Analysis. p.101835.
Kurniawan, R., Shall, R. and Meidian, W. T., 2021. The Effect of Communication Mix on
Customer Purchase Decision (Survey on Ajimaru Ramen
Bandung). Psychology and Education Journal, 58(1), pp.6108-6118.
Lorente Páramo, Á. J., Hernández García, Á. and Chaparro Peláez, J., 2021. Modelling e-mail
marketing effectiveness–An approach based on the theory of hierarchy-
of-effects.
Rodrigues, J., Nikhil, S. and Jacob, S., 2021. Promotional Strategies of McDonalds and Market
Effects. Journal of Management Research and Analysis, 3(1), pp.53-55.
Saputra, W.J., Subiyantoro, S. and Setiawan, B., 2020. Readibility, Meaning, and Function of
Foreign Language on Billboards in Surakarta: A Critical Discourse
Analysis. Humanus. 19(2). pp.267-276.
Suharko, A. and Melinda, T., 2021. Analysis of the Effect of Marketing Communication Mix on
Consumers’ Buying Interest of OE Bold. KnE Social Sciences, pp.1-12.
Online
8 Ways Billboard Advertising Drives Up Sales. 2021. [Online]. Available Through:
<https://penji.co/billboard-advertising/>
9 Best Internet Marketing Strategies for Growing Your Business. 2021. [Online]. Available
Through: <https://www.webfx.com/Internet-Marketing-Strategy.html>
https://smallbusiness.chron.com/marketing-communication-mix->
What is AIDA model in marketing ? 2021. [Online]. Available through:<
https://corporatefinanceinstitute.com/resources/knowledge/other/aida-model-
marketing/#:~:text=The%20AIDA%20Model%2C%20which
%20stands,material%20cost%2C%20direct%20or%20service&text=Process
%2Dcosting%2C%20on%20the%20other%20hand%20can%20be%20used.>
What is marketing communication mix? 2021. [Online]. Available through: <,.
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