Marketing Management Marketing Strategies Of Nike Marketing Essay

INTRODUCTION

Nike is one of the pioneers in marketing and has one of the strongest marketing mix. Depending mainly on pull strategy. It has established its hold in face of major competitors in its section like adidas and reebok.

Marketing mix can be defined as the identification of customer needs under four main aspects. Identifying the needs of clients is done by the company in order to meet them. NIKE has two distinct functions. The first is the identification of a marketing mix while the other is innovation. The marketing -mix aspect is concerned with getting clients while the innovation apect is concerned with creation of new products and services for clients.

The Company and leading sports brand- “NIKE” is a sports equipment and clothing company. It is global and can be identified with a number of products that include golf equipment, tennis rackets, skateboards, basketballs, footballs, shoes and athletic equipment. This company has established its name as one of the best in the sports industry. It has a trademark that aims at bringing out the sporting spirit i.e. ‘just do it’. It has built about five hundred manufacturing units in different parts of the world. More over the company has gone out of its way to market itself, as it has such a huge production potential and needs to back this up with a wide client base. Nike’s marketing mix serves as an example to other dealers in the sports wear industry . 

The Four Main Aspect of Marketing Mix are:

1. PRODUCT MIX

McGahan describes a product as a service or tangible good that is made available in exchange for money. Goods in this case may be used to refer to a single product, a series of products that fall within a product line or a service. This is only because the more the goods sold, the higher the demand for the item and the greater its success. 

Firstly the product must be unique. This implies that the product should have the ability to meet special needs in the market that no other product can compete with. A product should also be part of a brand family. So when it is introduced into this brand family, it should possess the ability to appeal to a different market segment .

Other aspects of the ‘product’ include a brand name. Marketers need to ensure that the brand name they select attracts the consumers’ attention. This is because it is the first aspect of the product that customers notice and look for. The product must also be packaged in such a manner that it draws customer’s attention. Nike in this case also takes measures to ensure that the entire product package speaks volumes because customers do not just buy the item itself , they buy the overall appeal. Extra features included in the product are also deemed a part of the ‘product mix’. NIKE also ensures that they also offer after sale services such as free delivery or issuance of warranties. On top of that, if a NIKE adds some information about how to use the product ,hence they add value to their product and this has gone a long way in securing sales. 

Nike has followed the above examples in its product mix strategy. The Company offers a wide range of products from 

• shoes 

• apparel 

• equipments 

These are all the ways in which the company is trying to meet consumer needs. It realizes that their clients could be participating in more than one sporting event. This means that they may require a range of products to meet all their sporting needs. The Company has also gone out of its way to add some value to its products. For example, there are some Nike shoes that have been installed with radio devices intended on measuring a runner’s pace. Another example of how the Company has added value to its products is by adding a trendy feel to their clothes. They usually make them in a hip-hop manner. NIKE also takes a lot of time to create quality goods. This is especially in relation to its shoes. The Company has established a reputation of quality in their industry. 

2.PRICE MIX

Price is defined as that thing that must be given up in order o derive value form a product. To the client, price is negative since they have to part with it. To the supplier, price is positive because it demonstrates the revenue they are obtaining from the goods they are producing One must consider any discounts offered or distances that the goods will have .NIKE also considers all the losses that will occur in the distribution chain and these must be accommodated in the quoted price .It also has to ensure that the product while entering the market should be affordably and not too costly. This type of strategy is called introductory pricing. 

The Nike Company has applied a number of pricing strategies. First of all, it used penetration or introductory strategies when entering the market. However, after establishing itself in the industry, the company has adopted a premium pricing strategy which also includes low prices since the common man also wants to own a NIKE product which is not cheap but considerably cheaper that its other more expensive products which are mostly in the premium segment. The premium strategy is application of a fixed price based on the quality of the product. Some critics have claimed that Nike prices are rather high. However prices reflect quality of the product. This strategy works well for NIKE because most clients who choose to purchase Nike products assert that they are ready for their prices since they feel that Nike worth it. 

3. PLACE MIX

Place may be interpreted to mean the exact location of a product or it may also refer to type of distribution channel. Distribution channels include any of the following activities or groups; 

• Selling 

• Feedback 

• Displaying 

•Promotion 

• Shipping 

• Ordering 

• Storage 

One of the most interesting aspects of place is retailing. This is because retailers have direct contact with clients and can therefore analyze consumer preferences. Some producers may opt to do retailing on their own. 

This is because they can improve customer care and make it part of their marketing strategy. There are able to save themselves some of those additional expenses that they incur with long distribution channels . This is because customers tend to prefer locations where they can get all the goods they require under one roof

The Nike Company has tried to maximize distribution channels in order to increase sales. It has achieved this through two approaches. The Company sometimes sells its products directly or it also uses subsidiaries and distributors. When selling its products directly, the company has created the idea of Nike towns in different parts of the US in order to bring something unique to the market. They have also utilized the internet to distribute some of its products. This can be deemed as a virtual store. Such a strategy was quite feasible in the current age of technology. As the company is located all over the world, it also had to use licensed distributors because it is rather difficult to reach all those parts of the globe. 

4. PROMOTION MIX

Promotion is one of the most critical aspects of any marketing mix. It may be defined as the issuance of corporate communication to certain target groups. It greatly involves advertisement, public relations, and direct sales among others. Promotions need to reflect the type, size and level of importance of a certain product.

Advertisements are usually chosen in cases where a message is intended on reaching large numbers of audiences at a particular time. They may come in the form of television, magazine, newspaper or internet advertisements. Another advantage of this form of promotion is that it can create a lasting image in a customer’s mind.  

Nike Has tried to maximize this aspect of its marketing mix. First of all, the company normally sponsors numerous sporting personalities in a wide range of sporting activities. Examples of such people include Kobe Bryant in basketball, Ronaldhinho, Wayne Rooney and Christiano Ronaldo in football, Tiger Woods in Golf and Roger Federer in tennis. They do this in order to establish a strong brand in those sporting activities. This has really boosted the Company. There are thousands of Nike advertisements that can be found on televisions, the internet and posters. Advertisements have been instrumental in marketing most of Nike’s products .This can also be called the communication mix of the brand .

CONCLUSION

Nike’s marketing strategy is to continuously improve its products and services. It does this through measures of product movements, assessments of their competitor’s products and innovation. They have achieved competitive edge through the employment of sound marketing techniques in the four aspects hence their performance. Their success continues to grow and they now hold 33% of the market in the sports shoe section which is the highest and coming in a close second is adidas with 22% of the market. Their aim is to dominate 50% in the next ten years.