Nike: Marketing Communication Methods and SWOT Analysis Report

This report offers a comprehensive analysis of Nike's marketing communication strategies. It begins with an introduction to marketing communication and its importance, then delves into various marketing communication methods employed by Nike, such as personal selling, direct marketing, public relations, and sales promotion. The report includes a SWOT analysis, examining Nike's strengths, weaknesses, opportunities, and threats. Additionally, it covers PESTLE analysis, exploring the political, economic, social, technological, legal, and environmental factors influencing Nike's business. The report further discusses the consumer buying process. The report also examines the effectiveness of Nike's marketing communication strategy, providing a well-rounded view of Nike's marketing approach.

MARKETING
COMMUNICATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different methods of marketing communications and contemporary internal / external factors
.....................................................................................................................................................1
SWOT analysis of NIKE.................................................................................................................3
TASK 2............................................................................................................................................6
Marketing communication strategy and elements of communication process...........................6
TASK 3............................................................................................................................................9
Effectiveness of NIKE marketing communications strategy......................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................15

INTRODUCTION
Communication is two way procedure of reaching the mutual understanding under which
participants are not only exchange news, feelings, ideas and information but also develop as well
as share meaning. It is a process of transferring as well as understanding information from one or
more than one person. Marketing communication is adopted through organisations to convey the
messages regarding regarding services and products directly and indirectly to consumers with an
intention to convenience them to by them (Bacile, Ye and Swilley, 2014). Various medium of
communication used through an organisation to exchange information regarding services to
consumers. Tools can be anything such as advertisement, personal selling, sponsorship,
promotion, public relations etc. This report is based on the Nike organisation. It is an American
corporation which is engaged in design development, worldwide marketing and manufacturing
of apparel, accessories, footwear and also services. In this report mention about the marketing
communication related strategy and various marketing communication method used through
Nike organisation. The requirements of marketers understand components of process of
communication before planning for any type of internal marketing campaign will be discussed
under this given report. In this, effectiveness of the NIKE marketing communication strategy at
the time of Pyeong Chang 2018 Olympic Winter Games will mentioned in given report.
TASK 1
Different methods of marketing communications and contemporary internal / external factors
In this modern time period, marketing communication is complex as well as fundamental
part of marketing efforts of an organisation. It is coordinated promotional messages delivered by
on or more than one channels like for an instance radio, personal selling, television and direct
mail. Sometimes, it is difficult for organisation to interact with customers to aware them
regarding services. Better communication with consumers will develop positive relationship
among the consumers as well as business firms (Baker, 2014). In addition to this marketer uses
marketing communication tools to develop brand awareness between potential and new
consumers so that brand of firm can be create in a better manner. Reputed brand image is helpful
in attract people for enhancing sales or profit level of firm. In this report, NIKE company is
taken and it is multinational corporation which engaged in design, producing, sales of
equipments, services, footwear, accessories and apparel in all over the world. It is one of the
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largest supplier of apparel as well as athletic shoes in world but it is main producer of the sports
equipments. Under this organisation more than 44000 staff members are working and its revenue
is US$ 34.35 billion. In addition to this, NIKE company uses different types of marketing
communication to interact with customers. The main goal of this company is to reach to large
number of population with biggest possible affect (Berthon and et. al., 2012). NIKE organisation
uses many celebrities to present ideal consumers of products of company. There are different
methods of marketing communication mention below:
Personal selling- It is traditional marketing communication method in which seller
prospective consumers in a direct way and also inform them regarding those products in which
they are dealing. It is more reliable communication mode. The personal selling of Nike efforts
happen in its stores. The employees of this company are well trained to give better assistance to
consumers in order to know more about goods of company and also persuade them to purchase
these goods. Some times, with the help of personalize services, sales employees promote firm
which assess consumers to search right products of Nike.
Direct marketing- Under this, through using emails, mobile phones, fax company
directly interact with consumers without including any other party. In context to Nike company,
it promote its new goods to target new market. New products generally advertised heavily.
Marketing communication mix of Nike company uses this marketing to establish effective
relationship with the target consumers and also motivate them to buy goods of firm.
Public relations- Under this, organisations perform the many social activities with
developing positive brand image at market place (Castronovo and Huang, 2012). Activities
which firm are undertaking like for an instance contributing some part from profit to child
education, public conveniences, organise campaigns for blood donation and many other things.
In addition to Nike firm, it uses public relation in order to address all social problems which are
linked to firm like for an instance use green technology, sweatshops etc.
Sales promotion- It involves many short- term incentives in order to persuade consumer
to take purchasing initiatives of services and products. This technique is not only assess in
sustaining current consumers but also attract new with providing some extra advantages. The
sales promotion of Nike is generally in form of special offers and coupons to target customers
(Corner and Randall, 2011). In context to motivate new consumers, firm uses this technique
through showing them advantages.
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Nike company uses balanced marketing communications mix in addition to promote new
consumers or retain existing.
Internal and external analysis of Nike Inc.
Nike firm is a global sports leader in equipments, apparel and shoes which shows its
strengths against its strong competitors and that is Adidas. The board of directors of Nike
includes independent and management directors (Danaher and Rossiter, 2011). External as well
as internal both factors affect on activities of business. External factors affect business firm
outside and company can not control them. On the other hand internal factors impact business
from inside of company and management has an ability to control all these factors. In Internal
factors include SWOT Analysis and in external involves PESTLE.
SWOT analysis of NIKE
Strengths Weaknesses
 Nike is one of the largest shoe marker
on all over world. It designs as well as
sell different variety of sports
accessories.
 Nike company outsources all aspects of
manufacturing in order to overseas
facilities.
 The brand portfolio of Nike is strong
and it has dominant market position.
 Production cost of Nike is minimum
and also strong research and
development (Delgado-Ballester,
Navarro and Sicilia, 2012).
 This firm is able to stand out in
crowded sportswear retail market due
to competition is more fragmented.
 Retail sector is more cost sensitive and
retailers are tend to provide same
experience to customers.
 As Nike is a big brand so its cost is
high. So from this reason every person
is not able to purchase its product and it
is one of the main weakness of Nike.
 The main focus of Nike on its business
of footwear and through considering
change in market brand, it will be risky
for company.
 Income of business is dependent on its
share of footwear market.
Opportunities Threats
 There is an opportunity to Nike  It is necessary that Nike company
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company to product development like
for an instance jewellery, sunglasses
and sport wear.
 At international level, firm can develop
its business and also develop its strong
brand recognition (Finney, 2011).
 There is an advantage to Nike firm to
providing value for the money.
 Nike organisation can developing its
business in the online retail channel.
Through this large number of people
will buy its products.
should make improvement in its brand
image.
 Markets of garments as well as sports
shoes is more competitive and under
this rivals are creating the alternative
brands in order to take away the market
share of Nike.
PESTLE Analysis of Nike
Political factors- Politics as well as government may be seem such as outside forces
realms business and regulations of government is affected through this factor. Nike company
influence through political environment of United Kingdom country because it sells its goods in
all over world. So, it is necessary for Nike to follow all rules and regulations of government.
Economical factors- These factors are main determinant of performance of an economy
which directly affect an organisation and resonating long term impacts. There is a need to Nike
that it should more focus on economies of countries where the products of sports are sells.
Developed as well as advanced countries both have stable economy with the similar purchasing
power of consumers. Nike company can penetrate with the sustainable profits such as Australia,
United States and United Kingdom (Graham and Frankenberge, 2011). Economic factors can
give an opportunity for effective Opportunities for Nike Organisation is a main stability of
developed economy and rapid development of the developing markets.
Social factors- Under this taste, preferences, lifestyles and needs of consumers are
changes in short period of time. So, it is necessary for company to determine needs of
consumers. It is necessary to know about concern and preference of people. In context to Nike
company, people are participating in the sports competition and fitness clubs. Nike firm can take
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many advantages of influencing the social changes through introducing the effective quality of
athletic and some of the other products of sports.
Technological factors- This factors make business more advance and also impact
operations of company. In addition to Nike company, it is concerned regarding technology as
well as techniques of marketing (Kim, 2011). It consists MIS (Marketing Information System) to
make innovation in its business operations or activities. Nike firm uses technology in order to
manufacture goods, deliver to consumers and also promote them should all monitored through
advanced technology in order to compete with the strong competitors. From communicating with
the consumers in order to design goods, technology gives value to companies. Nike firm gets an
opportunities to utilise the valuable information which are based on metrics to technological
advances and also allowing them to optimize production and increase revenue.
Legal factors- These factors impacts on business of Nike. Growth strategies of Nike have
been relied on the internationalisation and it is necessary that corporation should adopt legal
policy frameworks rapidly. Legal regulations consist copyrights of shoes of design and apparel
which are manufacturing against its strong rivals. There are many different legislations are
formed through government of United Kingdom in order to protect rights of employees, Nike
firm implement all legal rules at work place and conduct its activities in a legal and ethical
manner.
Environmental factors- In this modern era, green products or services are mainly
attaining more acceptances through consumers and also government. The main focus of Nike
company is on manufacturing techniques to develop better quality of goods to gain more market
share in the industry of sports (Lusch and Vargo, 2014). The eco- friendly products gaining
more popularity and Nike firm has complied with that ISO-1400. Environmental legislation
develops effective opportunities for Nike company to make improvement in its sustainability and
environmental programmes.
Consumer Buying Process
It is a series in which customers will take effective decisions in decision of purchasing.
Under this some steps are given below:
Problem recognition- It is a first step and in this marketer determine needs of consumers.
Need is a main source of purchasing behaviour (Mihart, 2012). Purchasing issues arises if in case
unmet need is recognized. Issue can be related with purchase of goods.
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Search information- After recognising problem, then there is a need to search information
with the help of different sources like for an instance commercial, public, experimental, personal
sources.
Illustration 1: 5 Stages of consumer buying decision process
(Source: 5 Stages of consumer buying decision process, 2018)
Alternatives evaluation- After getting necessary knowledge regarding products, customer
analyse different alternatives to satisfying quality, needs, demands of consumers.
Purchase decision- After examining of alternatives, consumers purchases suitable goods
which can satisfy their needs (Morgan, Katsikeas and Vorhies, 2012). But sometimes, there is a
chance to postpone buying decisions because of some reasons. It is necessary that marketer
should try to search main reasons and then try to eliminate them. Under this marketer should
convenience consumers to purchase its products in a better manner.
Post purchase behaviour- After purchasing goods, customers can be satisfied or not. If
customers will be satisfied then they will be happy and if they are not fully satisfied then they
will disappointed. It is a responsibility of marketer to fulfil needs of consumers.
TASK 2
Marketing communication strategy and elements of communication process
Marketing communication is helpful in creating brand awareness so that consumers will
purchase more products. In order to retain the consumer base, Nike company uses the effective
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marketing communications. The main motive of marketing communication is to reach message
of firm to target consumers as well as markets. By selecting better channel of market
communication, firm can inform its target audience regarding brand. It is a responsibility of
manager of an organisation to select an appropriate channel of marketing so that company can
easily interact with consumer without any barriers (Percy, 2014). At the time of conducting any
market campaign at internal market, there is a need to Nike firm to make improvement in
communication and learn about the another country.
Elements of Communication Process
Sender- This person takes an initiatives of conversation which convey the messages.
Communication begins with sender and it is an initiator of messages.
Encoding- Under this those messages which are send through starts with encoding
process where it uses non- verbal ways or certain words like for an instance signs, symbols,
posture and body gesture in order to translate information as well as data in the form of
messages. Skills, background, perception and knowledge of sender has big affect on success of
messages. From this receiver can understand that message in a easy manner.
Messages- After encoding, sender gets message which it intends in order to convey.
Under this, message can be in the form of symbolic, written, oral or also non- verbal in which
sighs, body gesture, sounds and silence are included which triggers response of receiver. It is
necessary that message should be in the concise form.
Communication channels- In this, sender selects an effective medium of communication
by which sender needs to convey its messages to receiver (Rawal, 2013). It should be chosen
carefully in context to develop message in a corrected and effective manner which is interpreted
through recipient. Selects of medium is based on interpersonal relationship among receiver and
sender ro message sent. There are various medium of communication such as oral, sound,
medium, virtual, gesture and many others.
Receiver- It is an individual for whom message is targeted. This person tries to be
comprehend it in an effective manner like for an instance achieving communication objective.
Under this, there is a need to decode that message based on experience, relationship with sender,
subject matter and trust. It is necessary to understand message of sender.
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Decoding- An individual which receives symbol and message from communicator tries to
transform in same manner and also complete its understanding. In this receiver converts message
in to the thoughts as well as tries to evaluate and understand (Rohm and et. al., 2012).
Feedback- It is a final step and in this process receiver received message and also
understand in a same manner. It enhance effectiveness of interaction as this permits sender in
order to know about efficiency of message.
VALS segmentation strategy
It is known as values lifestyle and attitude one of main primary methods in order to
perform psycho-graphic segmentation (Bacile, Ye and Swilley, 2014). In this market
segmentation is prepared to lead business firms to tailoring goods as well as services to appeal to
people to buy them. This type of strategy is emphasis on lifestyles and values of goods so that
consumers can buy them in a easy manner. This type of market segmentation strategy is helpful
for managers to make improvement in design as well as quality of current market trends. VALS
is varied for different people. VALS were created from theoretical base of the Maslow hierarchy
of wants and also concept of the social character. On the basis of research, there are two different
concepts which are critical for understand target customers and these are resources and primary
motivation. This theory was situated in year 1978 through Arnoid Mitchel. In this,consumers are
attracted only through motivation and also ethics through ideals as well as values of particular
goods. VALS was develops for keeping customer resources and capacity to accept the
innovation in the mind. This theory is more beneficial for the innovators of an organisation
which always focus on developing new things.
Innovation adoption theory
It is developed through E. M Rogers in year 1962 and it defines that managers of every
company have to develops better communication methods so that they can convey messages to
existing consumers. Innovation adaption theory is helpful in getting ideas, products, thoughts and
behaviour in context to accomplish success and growth at competitive market (Baker, 2014).
Apart from it, Nike company adopt new ideas for doing any activities and also focus on
implementing the new innovative ideas at workplace.
Push, pull and profile strategies
Under this, there are 3 different P's are included and these are profile, push and pull.
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Push strategy- It is direct communication form with the consumers and pushing goods
with little advertising. Main motive of this kind of strategy is to get products in to hands of
purchaser with no advertising. Under this strategy includes personal selling in order to acquire
consumer. Examples of this strategies are face to face selling, store displays, promotion by
packaging design etc.
Pull strategy- It is softer but more expensive approach. This strategy includes motivating
consumers in order to seek brand in active process ( Berthon and et. al., 2012). Under this better
strategy if the demand of goods is high then in this case consumers use brand as a part of buying
decision.
Profile strategy- It is different from pull and push strategies. It takes time and up to date
the system in which data is stored. Business firm with good profile as well as strong brand equity
can be leverage as a main part of communication strategy.
Importance of communicate elements in marketing
Communication is a procedure in which information or data is embedded in package and
also channelled through sender to receiver through some of the media channel. It is dispensable
for the entities of business sin order to understand different components in a detailed manner
before doing any type of planning of various marketing campaigns. It will be helpful in
developing an adequate marketing plan for attaining the large market share. Presently, Nike
company performs at internal level so it requires to identify values, behaviour, morals and
attitude of existing consumers for attracting large number of consumers. Strategies of marketing
communication are very assistive in gathering the reviews as well as feedbacks from consumers
so that manager can make improvement in making quality of goods in an effective or better
manner (Castronovo and Huang, 2012). It is necessary that marketing communication strategy
should be more effective and helpful to select a constructive methods of communication for
various nations.
TASK 3
Effectiveness of NIKE marketing communications strategy
The managers of Nike business firm used different techniques as well tools in addition to
determine effectiveness of the marketing communication related strategies. With the help of
effective marketing strategies, firm can conduct its activities in a right manner. Every strategy
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