17 September 2012
Marketing Plan: Final Paper
In today’s marketplace, a company cannot be too careful when preparing to introduce a product to market. Considering and developing plans for the following will assist Nike to introduce successful product.
The Nike Company will consider the segmentation criteria that affect their target market. “Consumer value and relationships are at the center of marketing strategy and programs. Through market segmentation, targeting, differentiation, and positioning, the company divides the total market into smaller segments, selects segments it can best serve, and decides how it wants to bring value to target consumers in the selected segments” (Armstrong & Kotler, 2011) . Nike will create a marketing mix that allows them to produce the desired response in the target market.
Nike’s desired market consists of different types of consumers with different needs. The segmentation criteria will uncover, which markets offer the greatest opportunities. First, Nike must decide who it wants to serve; this is accomplished by dividing the markets into target consumers and selecting the desired segments. Marketing management of segmentation criteria is a combination of customer management and demand management (Armstrong & Kotler, 2011). Understanding how to serve the desired segmentations is essential to Nike’s success; Nike must position the product correctly to the specific marketplace.
Market segmentation creates the ability to market one product in different ways to reach multiple consumers. Each segmentation Nike creates will have been \up of consumers who respond similarly to a set of marketing efforts. For example it would not be in Nike’s interest to segment their markets based on income. The knee warmer will remain a constant price and will create the same benefits for a user no matter of his or her financial status. Nike is more interested in marketing to different level athletes. Nike will market the knee warmers to extreme athletes wanting to compete year round highlighting the endurance and resilience. If this were Nike’s only marketing strategy they could lose potential markets and many consumers. Nike will market to injured individuals and people who have chronic knee pain as a separate market. The previous marketing plan can deter these consumers from believing the knee warmer is a product suited for them. Nike can create a second marketing strategy outlining the benefits for everyday use by lower intensity athletes.
Nike is the largest sports apparel company in the world, but in recent years has reached a plateau. In the last year, the company’s net worth has dropped 10%, and in the few years before had increased marginally ("Forbes" 2012). Nike appears to be in the maturity stage of the lifecycle and should consider developing and marketing one version of the electric knee warmer to minimize research and development cost. Differentiated marketing is the best bet for Nike’s goals of distributing the knee warmer to a large market. By using this strategy, Nike can offer the knee warmer for a lower price to professional groups, and a higher retail price to the masses. Recreational athletes will be the target market for Nike because these customers make up the larger majority of the market. By enlisting the help of Nike’s extensive spokespeople who have had injuries, Nike can appeal to the average athlete trying to stay healthy. Offering the product at a lower cost to semi-professional organizations will offer advertising to those recreational athletes working their way up to a more exclusive level....