Kotler Keller: Marketing Management /page: 51-52 / Marketing Excellence / Nike Question 1: What are the pros, cons and risks associated with Nike’s core marketing strategy ?
We can evaluate Nike’s core marketing strategy as related them to the relevant marketing theories. First of them is distribution theory. Nike distributes its products on different level basis. The high quality products are given to a certain distributers while the low price to be sold at highly discounted price at the retail stores such as Wal-Mart. Nike has also become the leader in the e-commerce by being the first to the market whit its e-commerce website. This program represents the first time a company has offered mass footwear through the internet and provides competitive advantages to Nike.
One of the other theories is advertising and promotion. Nike makes contracts with some celebrity athletes which can take attention to their products such as Michael Jordan, Tiger Woods, Maria Sharapova, Ronaldo. This has created a relatively high level of Nike’s awareness. Nike also employed a large amounts of advertisements. Their aggressive advertising campaigns, celebrity endorsements and quality products all enhance their brand and image.
The other theory is price. The price is not effective on their strategy because Nike’s target market is based on the consumers who care more about the utility and quality of the product . This strategy focuses on the consumers who like Nike and pushes the products value to a higher level. Once the consumer develop the product intimacy, they come to associate their person with the products and will pay whatever price quoted on the products. Nike use vertical integration price strategy and they also engaged in various channel level operations both to control costs and influence the price function.
And when we look at the market segmentation theory, we see that most of the consumer of Nike’s products is mainly athletic. Their segmentation market typically...
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