Marketing is the activity/set of institutions and process of creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners and society at large. (American Marketing Association)
Marketing is the management process responsible for identifying, anticipating and satisfying customers’ requirements profitably. (Chartered Institute of Management) The following are the importance of marketing:
* Promote product awareness to the public
* Healthy competition
* Boosts product sales
* Builds company reputation
1.1 Select any brand/company and explain how it is being marketed? 1.2 Find out the benefits and costs of marketing orientation for that organization Brand/company- Nike, Inc.
Nike is the world’s renowned and leading supplier of athletic shoes and apparels. It controls more than 49% of athletic shoe market with sale of 3.7 Billion US Dollar. It was found in 1962 and has attained this legendary position through innovation and attractive designs, quality production and wise marketing strategies. It has huge range of different products in its target market of specific group of people. Nike aim to meet the requirements of people of all ages belonging to varying categories profitably.
1.1 Explain how it is being marketed?
Nike markets its products through various ways of Promotions. The following are the different promotion techniques used by Nike to promote/market its products: i. Advertising
Nike’s legend with television commercials dates back to 1982 with the first advertisement broadcast during the New York Marathon. Nike’s advertisements are very appealing and leave a long lasting imprint in the customers’ minds. The company also has used electronic media (official website of Nike and newspapers) to promote their brand. ii. Public Relation
This is an entity that focuses on brand building as well as defending. Nike has recently employed the green public relation strategy. This has been a powerful weapon in the corporate social responsibility aspect with environment issues the subject of concern in contemporary times. iii. Personal selling
Customer assistants in Nike retail stores have direct contact and constant interaction with the buyers of their merchandise/products. Nike’s representatives often train customer assistants on the latest in technology and merchandise. iv. Sales promotion
These are driven around the accelerated purchase of products. Nike entices its customers with discounts rebates and gift coupons. v. Direct mail
In this, publicity material is sent to a customer within the targeted segment. Nike’s concentrated efforts in recent times towards publishing its customer catalogues has been met with open arms a staggering 200,000 responses to the catalogue email in 60 days. vi. Internet marketing
The dot com industry has been an emerging trend setter in ever-growing and evolving marketing strategies. Nike has given volumes of ad space to its armada of products via a network of sites. Nike is accelerating internet marketing campaigns to diversify extensively on the web. The impact of these promotional strategies can again be traced back to the profits at which Nike operates on. vii. Sponsorship
This has been a key strategy in Nike’s promotional activities. Nike endorses a galaxy of celebrity athletes across all sports. Michael Jordan was an absolute superstar for then in terms of publicity and sales. A whole array of national teams including the Indian national Cricket Team is under sponsorship contract with Nike. Also famous Golf player Tiger Wood and tennis players like Roger Federal, Rafael, Venus Williams and her sister also they are under sponsorship contract with Nike.
1.2 Benefits and costs of marketing orientation for Nike, Inc. Marketing orientation means focusing on satisfying customer needs and wants and winning market over competitors profitably. The...