Nike’s marketing strategy rest mostly on a brand image which is favourable and has evolved into a great multinational enterprise over time. The favourable brand image has been kept afloat due to the strong association with the Nike’s logo which is quite distinctive and the slogan “Just Do It” which has been used in advertisement for quite some time. The company has been known to invest heavily in advertisements and brand promotion. However Nike always has to adopt a favourable market coverage strategy for its products. Marketing is an important function that plays a vital role in the running of a business. If the product is not marketed in the right manner and fails to reach the end customer, the business will fail. This is why marketing strategies play crucial roles.
DEFINITION OF MARKET COVERAGE STRATEGY
According to US Legal (the legal destination site for consumers, small business, attorneys, corporations, and anyone interested in the law, or in need of legal information, products or services), market coverage strategy is a method for evaluating the various segments of the marketplace and deciding which segments to cover in the marketing of a particular product. Michael Wiriadenata defines market coverage strategy as a method for evaluating the various segments of the marketplace and deciding which segments to cover in the marketing of a particular product. Market coverage strategy is employed in capturing a planned share of a market.
TYPES OF MARKET COVERAGE STRATEGY
Michael E. Porter, author of the book "competitive strategy: techniques for analyzing industries and competitors" has categorized strategies into 3 generic types, which are: Overall cost leadership; Here the business works hard to achieve the lowest costs of production and distribution so it can price lower than its competitors and win a large market share. Differentiation; Here the business concentrates on achieving superior performance in some important customer benefit area valued by the market as a whole. It can strive to be the service leader, the quality leader, the style leader, the technology leader, etc. Focus; Here the business focuses on one or more narrow market segment rather than going after the whole market. The firm gets to know the needs of these segments and pursues either cost leadership or some form of differentiation within the target segment. One of the most important decisions that a company makes is what market coverage strategy to use for a product. In analyzing any one product, the first thing to consider is the market. Marketers generally adopt one of the following three general market coverage strategies; undifferentiated marketing, differentiated marketing and concentrated marketing. Undifferentiated Marketing
Undifferentiated marketing is marketing that does not target a particular segment of the market. Instead the firm adopts one marketing strategy and hopes that it will appeal to as many people as possible. It is sometimes referred to as mass marketing. Undifferentiated marketing usually involves targeting the whole market with one product. Coca Cola's original marketing strategy was based on this format when they offered one product which they believed had universal appeal. However now that Coca Cola has introduced other products, it has changed its marketing strategy. An undifferentiated marketing strategy can be cheaper than the other strategies because there is only one product to produce, distribute and market. It can also be cheaper because the firm is not targeting multiple market segments. A company can benefit from undifferentiated marketing in several ways. This marketing strategy does not require the same level of research into consumer tastes as other types of marketing. While differentiated and concentrated marketing are both research-intensive approaches, undifferentiated marketing requires an understanding of the largest possible segment of the population on a basic level to achieve...