BUS 330 Principles of Marketing
January 13, 2013
Growing up there was one brand that all professional athletes used in my eyes, Nike. The Swoosh, was the icon that all kids had to have, and why not? All the big time players not only had it, but endorsed it. Ads, which had Michael “Air” Jordan, Bo Jackson, or Wayne Gretsky “The Great One” doing amazing physical feats, always, motivated the crowds. The Nike company new this, and blasted it marketing campaign through all sorts of media. In this essay I will break down this multi-billion dollar company’s marketing techniques in the areas of: customer value, promotional items, marketing’s four p’s of the marketing mix, the segmentation, targeting, and positioning (STP) approach to market the product, Customer Relationship Management (CRM), environmental trends, the largest customer base, its competitors, and ethical marketing for this corporation both stateside and overseas. Putting these athletes in the ads is just one way to build value for a company. From Ashford universities “Principle of Marketing” by “Sara White” We are introduced to marketing with the definition of marketing as “an activity designed to stimulate exchanges that have value for customers, partners, and society at large”. With this definition of marketing intact the question that still is out pondering is what is value? “Value was defined as the perceived trade-off between benefits and the sacrifice required to take possession of those benefits”. To break it down further we will look at customer value. Customer value is a title for the cost of a particular trade for the purchaser (buyer) instead of the company (seller). Looking into a selling Nike abroad, whatever a customer may pay in the United States may not be the same overseas. The first thing is to look at is how the current client group influences the market in the states. Nike had a humble start with creators Bill Bowerman and Phil Knight trying to improve on the track shoe of the day. The former “Blue Ribbon Sports Company” now known as Nike wanted to increase value into their product by having athletes endorses it. So they found the person that they thought would be the best at building future customer value, Steve Prefontaine. During his college time he never lost a race on his home track, and was exposed to national notoriety with is fourth place finish in Munich. This was one of their first successes in marketing. As popularity for their product rose the selected new sports models to display the shoes on the track. This really kicked of the sale of the shoes. Seeing how this success worked at their home setting, taking it to other countries should be no problem. Paving the way with athletes that had above average ability in their field was how Nike struck the marketing campaigned. Finding someone in another country that could spark the same influence over the masses would keep thing on track for Customer value overseas. This would all depend on what country we planned on taken our product to. The last thing that we are going to look at with customer value is the four utilities of customer value. The four utilities are: Form, Time, Place, and Ease of Possession. The form in the four utilities shows what effort Nike puts into their product that makes it desirable. Part of this desire is the quality and showmanship they place in every item. The other part is who they put in their invention. This was very clear in the mid-80 when Nike was the company that took on NBA rookie Michael Jordan, to represent their company’s goals. Being one of the leaders of in business, time is important. Nike put their product out when they need to. They also change it enough to keep things fresh. Time also goes along with place. Not only does the timing of releasing product play a huge role, the place does as...
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