Marketing Fundamentals of Nike: An Analysis and Evaluation

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Marketing Fundamentals Analysis and Evaluation- Assessment 2
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Introduction
The marketing fundamentals are very significant for business operations. The present study is
about the marketing fundamentals of Nike. The process and stages of the marketing process is
described in this study. The importance of the marketing process to increase the company’s value
for the customers is explained in it. Moreover, role of the stakeholders in the marketing activities
is also described.
Nike is a company of United States, which deals with apparels, accessories and sports
equipments. The annual revenue of this company is 36.39 billion US dollars. It spends 12% of
the annual revenue in marketing processes and maintains a particular vision to provide proper
satisfaction to the customers and stakeholders.
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Discussion
Task 1A
“Processes and stages of marketing including the role of the marketing mix.”
The main objective of the marketing process is to increase the value of the brand for customers.
In this way, the customers can be satisfied properly (Oblak et al., 2017). In marketing process of
the business organizations such as Nike, various situations are examined properly by the
marketing team to identify the opportunity. In this processes, the marketing team of Nike also
formulates the strategies to value the proposition.
When Nike launches any new product, it follows four stages in the marketing processes of that
new product. Those stages are discussed below:
Introduction
In introduction stage, the company introduces the product with the customers by the promotion
techniques of the marketing processes (Burford and Chan, 2017). Nike promotes their products
through social media, TV commercials and websites.
Growth
When the customers accept the products, the sale margin of that product will increase; the
company monitors the growth of the product. The profitability of Nike is increased in this stage.
It is a very important stage for the business operation of this company.
Maturity
In the maturity stage, the product sale margin reaches at the peak point and the competitors start
to launch alternative products (Sengupta and Choudhuri, 2017). The marketing team of Nike
study the market and monitor the acceptance level of the product to the customers.
Decline
In this stage, the company tries to apply the marketing strategies and plans by which some new
features are included in the product. Lastly, the company stops the production of the product and
try to launch another new product in the market. The marketing team of Nike researches the
present status of the market and identifies the needs of the customers before launching new
products.
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Marketing mix
Product
It is very important for the business organizations to launch appropriate products in the market.
The marketing team of the business organizations such as Nike study the market and monitors
the feed backs of the customers. In this way, they can identify the actual need of the customers
(Boshnakova and Goldblatt, 2016). After that, they advise the manufacturing team to launch new
products or to add new features in the existing products by which the customers can easily accept
the products of the company.
Price
Price is very significant for the sale margin and profitability of the company. In this step of
marketing mix, the business organizations try to study the economic status of the country
(Ponomarenko, 2016). The marketing team of Nike study the international economy first as it
influences the economic status of United States. After these researches, the marketing team
obtain enough information about the purchasing ability of the customers. As per the purchasing
ability of the customers, they fix the price of their products.
Promotion
In this, the business organizations introduce their products and services to the customers
(McDavis et al., 2018). Nike uses different platforms to promote their products. This company
spend 12% of their annual revenue to promote the products. It uses social networking sites,
television commercials and websites to promote their products. The marketing team of this
company also use online survey as a promotional activity.
Place
This element of the marketing mix decides the place of selling the products and services. The
business organizations mainly use two types of places to sell their products (Baines et al., 2017).
Similarly, Nike also uses these two types of places. First, the places owned by the company and
second the places of the third parties. The products of Nike are retailed in the showrooms of the
company as well as the places (such as shopping malls) of the third parties. The company has to
pay more money to the third parties but on the other hand, the company also gains more profit by
selling their products in two types of places.
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Packaging
It is the visual element of the marketing mix. The external appearance of the products and
services can improve the sale of the products (Elshiewy et al., 2017). Therefore, the business
organizations pay attention to the packaging of their products and services in present era. They
think that the packaging can influence the purchasing decision of the customers.
Positioning
This element helps the company to determine their market value and their impression in the
market in front of the customers (Li et al., 2016). In order to increase the acceptance level of the
customers for a particular product, the marketing team of Nike studies the market trends and
adds new features in the existing product. In this way, they try to maintain the position of the
brand in the market. This element also helps to create a good image and impression of the
product and the brand (Kotler et al., 2015).
People
It is the final element of the marketing mix. The internal people are the employees and the
external people are the customers of the business organizations (Wilson et al., 2018). The
marketing team of Nike conduct a study regarding the likes, dislikes and needs of the customers
as it helps them to define the marketing strategies and activities.
“The role of marketing in creating value for customers”
The marketing team of the business organizations help to create the value of the products and
brands for the customers by creating the need of product, providing proper knowledge and
information regarding the products and services and reaching to the expected customers and
market (Cortez and Jin, 2016). Marketing uses five steps to create value for the customers, which
are described below:
First step: Identify the drives value for the customers
The marketing experts of the business organizations use this step to increase the brand and
product value for the customers. The marketing team of Nike communicate with the customers,
conduct surveys on them, study their actions, reactions and gather feedback about the products. It
helps them to understand products’ value to the customers and it also focuses on the
opportunities by which the company can help them. It also increases the brand value.
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Second step: Define the value proposition
In this step, the marketers evaluate the value of the products for the customers. The marketing
experts of Nike monitor the feedbacks, performs the online survey to identify the value of their
products to the customers.
Third step: Study the customers and the segments where they can create more value than
competitors
In this step, the marketers identify their target customers and try to improve their position in
comparison to the competitors. The marketing team of Nike try to provide better quality products
to the customers in a reasonable price. This marketing strategy helps the company to improve the
brand value as compared to the competitors.
Fourth step: Fix a proper price for the products
The marketing team of the business organizations have to fix the price of the products and the
services by which the customers can receive the value and the company gain maximize profit
from that particular products or services. The marketing experts of Nike also follow this
technique to satisfy the customers. In this way, they create value for the customers.
Fifth step: Focus on the valuable customers
The marketing experts of the business organizations divide the total customers in some aspects.
The customers who always prefer the company’s product are the valuable customers as those
customers always support the company for increasing their profitability. The marketing team of
Nike always focus on the needs of the valuable customers and improve the product quality as per
their needs. It increases the brand as well as the product value for the customers.
“Stakeholder engagement and their impact on the marketing activities of an organisation”
Stakeholder engagement is a process of marketing, in which the business organizations involve
the people who can be influenced by the various decisions of that organization or by the
implementation of the strategies and plans of the organizations. The marketing team of the
business organizations try to fulfil the needs of the stakeholders.
Nike applies stakeholders’ theory in the stakeholder engagement process. This theory is actually
a particular approach by which the business organizations deal with and recognizes the
stakeholders. According to this theory, there are different types of stakeholders in the business
organizations who are influenced by the work process of organization such as employees,
suppliers, manufacturer, government bodies, environmentalists, housing activist and neighbours.
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Employees
The employees of Nike work hard to provide better quality product to the customers. Therefore,
the company tries hard to provide them proper job security, remuneration and a healthy work
culture.
Suppliers
The suppliers provide resources to the organizations and the productivity of Nike depends on the
amount of resources. Therefore, the company deals with the suppliers in a fair and transparent
way.
Manufacturers
The manufacturing unit of the organizations such as Nike helps to improve the existing products
and to launch the new products. Therefore, the company provides them proper technological
support.
Environmentalists
The environmentalists examine the construction plans of the company. Nike provides the
environmentalist team proper equipments by which they can perform better.
Housing activists
The housing activists are the stakeholders who handle the development process of the
organization. The business organizations like Nike are conscious about their growth and the
companies also deal with them fairly.
Government bodies
The business organizations need the government approvals and licenses to perform the business
operations. Therefore, the company spends a percentage of the annual revenue to maintain the
approvals and licenses.
Neighbours
The other brands and business organizations are named as the neighbours of the company. They
are the competitors of the company. The companies should maintain the business ethics in the
competitive market. Nike always competes with other brands fairly and transparently.
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Impacts of stakeholders in marketing processes
Financial impact
The main objective of the marketing processes is to increase the profitability of the organizations
(Armstrong et al., 2015). The customers are the main source of income of the companies. When
the customers accept the products of Nike, the annual revenue is increased. Then, the respective
company spend more money in the marketing activities.
Social Impact
The marketing team of the business organizations tries to make a better brand image in the
market. Then the company can gain goodwill in the market. The stakeholders help this objective
of marketing process by providing the brand a trustworthy image of the companies like Nike.
Operational impact
Marketing can influence all the aspects of business organizations. The employees are the main
pillar of the organization. Therefore, they can influence the marketing activities of Nike.
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Conclusion
It can be concluded that this present study has explained about the marketing fundamentals of
Nike. The marketing processes of this company have different stages and processes that help the
company to achieve the business success. The marketing mix of this company contains seven
elements and the marketing team is concern about these elements. The company uses stakeholder
theory to manage the needs of the stakeholders effectively.
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Task 1B
“To conclude your essay write, a reflection of the tactical communication tools used to
generate awareness and interest in your project. Consideration should be given to the success
of the tools and the academic theory that supports their application. Please ensure you refer to
your blog posts as one of the communication tools used.”
The tactical communication system is a kind of communication which is used by the direct
support of various tactical forces and it also helps to fulfil all the requirements in the changing
situation (Changingminds, 2019). It can also verify the business environment and provide
protected communication systems such as video, data and voice.
There are various tools of tactical communication system such as digital marketing, online
promotion, social media sites marketing, email marketing, search engine optimization, search
advertising and blog posts. In my opinion, in the present time, the tactical communication tools
are very effective for the marketing activities. The marketing team also takes the tactical
decisions, executes the marketing plans and monitors the results.
One of the most significant aims of the marketing department of the business organization is to
promote the newly launched products together with creating a strong brand value in the market
in comparison to the competitors. I can easily recognize that the marketing team of Nike also
follows this objective. When any organization launches any new product in the market, it
promotes the products only through the television commercials. However, as per my present
research this company is using different tactical tools ads the platform of promotion. I can
identify that the tactical communication tools make the marketing team’s work easier. In present
days the business organizations promote their products via blog post, email, online survey and
social networking sites. In my opinion, in the present era, the maximum number of people uses
smartphones and computers. They also use various social sites, email and other tactical
communication tools to connect with each other. Therefore, it becomes much easier to promote
the newly launched products to the population by using the tactical tools. The business
organizations also use these tools to promote products successfully.
The business organizations use ‘understanding other’ academic theory in their marketing
processes. It helps the marketing team to analyse the needs, likes and dislikes of the customers
and suppliers.
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Another theory is used by the marketing team of nearly all organisations. I can recognize that the
marketing team of organizations has to take various decisions in the business operations. This
theory helps them to do that properly.
It helps the marketing team to study the general behavioural response and identify the market
trend. The marketing experts of business organizations have to apply this in the market analysis
process.
Blog post is another communication tool that helps the marketing processes to promote the
products. The marketing team of the organisations post a commercial of the product in the blog
of their websites and the social sites for the customers. The customers also share that post to the
other friends and families’ blog. In this way the product is introduced to a large number of
populations. The organizations use this technique while launching any new products. I find that
this trend of blog post technique to promote the products is starts in 2012. After that, it becomes
a popular marketing strategy in present years.
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Reference List
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