Marketing orientation of nike

nutrientstuff predilection of nikeMarketing is the instruction fulfil that identifies, anticipates and satisfies guest require manpowerts profitably1In details of this comment, merchandiseing is a man erament process where entirely the activities and tasks argon coordinated and performed by both individuals and equipment. By identifying a group of guests their need, interests and helps them to pull in reliables in a reasonable set with wide-cut role. Not only these, expecting them for the next condemnation and which depart energise occupation profitable.The definition provided by the Philip Kotler is-Marketing is the mixer process by which individuals and groups obtain what they need and want with creating and exever-changing harvest-festivals and wear to be with others2In this definition Kotler said, trade is a social process means by looking merchandise identify the consumers how they behave and attitude, consider and think around a harvest-feast how a tell a exceptional mathematical product is good enough to satisfy vendee wants and needs to a fault how it is healthful enough to find them grater to support and transpose with good measure for the product.From my proclaim definition-Marketing is a managerial and social process where plaque performs or does activities to ensure and identify customer needs and wants ar fulfilled, straight them by creating products or go with the exchange of value through ensuring the profit talent for the makeup.1. B Marketing OrientationThe meaning of merchandising concept for an organisation is that, they be aimed all of it efforts to keep closer themselves to the customers for satisfying them by the services or products around the needs and wants and stay forever a step ahead from their competitors. Basically the major objective is for the organisation to create a affectionateness of attention of their products to the customers.3Basically marketing orientation is an approach to business that center ons its activities to satisfy the needs and wants of its customers.Marketing orientation is genuinely a good range of activities where it is necessary to make sure that all the marketing researches are to the highest degree to invent the customer needs and requirements.The marketing orientation concept is old bagd on the following three pillars-Nike are strongly customer-foc engrossd, heavily committed and get around the superior value for customers. These party theatrical roles an absolute dedication to sensing, serving and satisfying the needs of customers in clear(p) target markets. They motivate e rattlingone in the arranging to deliver juicy type and superior value for their customers, leading to high levels of customer satisfaction. These organizations know that if they relieve oneself care of their customers, market share and profits will follow.41. C change vs. Marketing concept and which one best describes for NikeSelling orientation is a material body of marketing activities where business tries to influence or persuade customers to deal their product or service. It sees its carry as getting the interest of resemblingly customers for their existing products and servicesMarketing orientation is a nonher part of marketing activities where the order first target a market, then decide to teach customer needs and wants, besides slightly coordinating activities to convince consumers identical footing, radiation diagram, communication, appropriate delivery, competitive and profitable goods and services.Nike is a market oriented organisation beca occasion-Nike has well understanding of its target consumers to construct a owing(p)er value for them.Has a good capability to adopt the taste of consumers by measure to metre.Does research on the competitors to see what strategies are they use to meet the customers need.Has good marketing plans and delivered the promise that they made with customers to give them high tonus, appropriate features, see, styles and categories, office price products with availability.By satisfying the consumers needs/wants Nike getting well realise in the market place and achieving its objective by making profit.1. D Implementation of the marketing conceptThe benefits areKnowing and understanding the changing needs, wants and trusts of athletes and customers to create new innovative products.Look forward to market changes and take action very firstly to those changes. untouchable firebrand image with consistently add the number of multitude satisfied.Improve stakeholder benefits and maintain strong share values.Leading the market with advance thought and technology.(Nike+, Nike Free)Market research gives a huge priority of product acceptability.( packaging and attractive spiffy design)Sponsoring heterogeneous distinction sports personalities and certified teams who are utilise to get concentration of customers on Nike products.Easily manage the criticism .Powerful announce of Nike products are creating better market for the compevery.The continuous breakment of the caller-outs core competence.The costs of adopting the marketing concept are weighty investment in the marketing research and product development.(NSRL) juicy costs of employing the best stack in their specialist areas.Using solid ground best p grades for advertising products.Sponsoring antithetical celebrities and professional teams in time basis. commodious investment on product publicizing before launching in the market.Different promotional costs TV advert, sales promotion and globe relation.Distri aloneion costs serving product in disparate channels. talk costs- dealing differently with a range of different market segments.Heavy cost of maintaining spectacular and expensive website.Task-22. A Macro and micro environmental work outMacro Environmental factor Micro environmental factor is an external factor that influences the guild externally.Social factor Nike brand and its motto beneficial do it is very well known to plurality.Consciousness of plenty about dieting and fitness.Consumers are changing themselves from sports to fashion oriented.promotional advertising to get more young customers where meshwork is using as a primary source of information.Sponsoring sporting events and clinics to make good social image. propel womens, young consumers for leisure activities.Technological factorEffective use of IT in the branch of marketing information system in every opinion of products from development to scattering.It has advance technology to develop and research their product.Has a great propensity to take on new technology for the product.Heavy design and shape of athletic footgear.Nike has NSRL (Nike Sports Research Laboratory) which is offer new shipway to improve existing products.Micro environmental factorProfit margin for Nike5 years average46.8% (Gross Margin)9.3% (Net Margin)Structure- Nike has a matrix structure and in that location geographic structure consists of with NAFTA (the States, Canada, and Mexico), EU, EMEA and Asia Pacific.Technological development- For developing and executing idea Nike has APE, NSRL and it too has revenue enhancement expert economists which focus in the reduction of prospective costs.HRM- Orthopedic Experts, base hit Technologists, Production Engineers who areInvolved to find out the right people and product for the company.Procurement- Nike vitiates its raw materials in mint size, use labors and other services in the same countries where manufacturing takes place.Inbound LogisticsChina, Vietnam, Indonesia and Thailand.OperationsOperating their business in more than 160 countries where most of the work is occurred in China, Thailand, Indonesia, Malaysia, Vietnam, Turkey, Sri Lanka, India, Cambodia, Taiwan, Mexico and Israel.Outbound LogisticsThey allot their product to the retailers, via internet and with 700 contract shops in the whole mankind.Sales Mark etingSecret Tournament campaign approach- TV internet ads, retails, consumers events, public relations.56Value Chain Analysis2. B partition criteriaGeographic SegmentationGeographic segmentation is about dividing the market within diverse geographic part for example- in cities, town, nations, countries and regions.Nike footwear is really historied in the part of EU, EMEA and Asia Pacific currently. The objective is to sell this product in those continents where around special(prenominal) sports is most popular. For example, foot puffiness, basketball, rugby is widely popular in Europe now-a-days. It is not much popular in south Asia so basically its footwear is advertised more generally in Europe. (Nike, two hundred9).demographic segmentationDemographic segmentation divides on age, gender, execute, occupation, income, nationality, family size and overly on the level of education.Relating to age and income, they target peoples in variety age from young person to old adults an d the income series is basically from middle to upper class. By depends on race and gender it has broadly expanded itself nationally. They do advertise for both men and women for every single race and nationality. Nike really doesnt show off themselves with families but identify with teams. Teams of different sports in the world are targeted by Nike. It also did run ad campaign called stay in instill in 1991.Psychographic SegmentationPsychographic segmentation gives a picture about social class, standards, characteristics, and the disembodied spirit style- opinions, beliefs, interests and values of customers.Nike uses athlete where it influences consumer to be interested on their shoes and footwear. Nike promotes a positive and confident attitude, target alship canal those kinds of people.2. C Target marketYoung generation (bachelor stage) between 18-30 years old. Because they want to themselves appear to others to be fit, sound and athleticBecause at this stage of age young peopl e prepare themselves to enter into the job market. They are the generation X, they exchangeable fashion, sports. Nike uses their sports celebrity to advertise footwear which is fashionable and that make influences them to demoralize footwear. skilful do it, write the future are some of slogan that make these X generation very aggressive to do anything good and make the future bright.People between 30-50 years old, middle-high income social class.These people have already been contactd a bit in his/her life and they are now away(p) from the crisis of economy. They have made their stead, position in the society, wants to lead life magnificently with prestige product like Nike. People dismiss show of their status and ability of leading healthy life.Nike advertises its products by using different ways and it targets a particular groups or types of people by ads. Nike targeted men in a way that appeals to masculine values and to women with appeals to their values. Women today wan t equality with men, to be seen as just as able bodied and finally, both genders will buy Nike because its expensive and shows that they have the money to buy Nike, just as people buy Mercedes cars when a Fiat does the same job.2. D Buyer behaviour in marketing activitiesI am going to mention some marketing activities that should follow Nike to take part on buyer behaviourPsychological forcesMotivation- Nike is a enlighten brand with high quality design, style, price and lasting warranty which motivate people to buy Nike.Perception- World reputation, brand image, high features and quality.Personality- to show off to their friends and neighbours that they are fit, healthy athletic types and able to afford Nikes products.Social groupsCulture- produce different design product based on the culture.Subculture- example-Air Jordan shoes specifically makes for basket ball game, popular in North America- USA, Canada.Social class- middle and upper classes. computer address group- Popular c elebrities, teams and clubs Nike adopt to convince consumer to buy their footwear.Family- Parents want to see their children are athletes, well fitted and healthy which influence them to buy Nike.Situational FactorsWorld brand and fashionable products.700 contract shops all over the world where buyer can buy. (Over 18000 shops in USA)To show off people the status and ability to buy Nike. innovative innovative, fashionable, unique design and attractive footwear make interest and desire of consumers to buy Nike.Nike their information search leaves a buyer with possible alternatives, the elicited set.Nike has different features design footwears which are specially different and suitable for particular work. (Football, soccer, running, skateboarding, cycling etc.). If the consumers are not satisfied on the previous product then they can try new any other model.Nike has so many stores, different products/models, well packaging system and many satisfactory ways for consumer to buy.Nike is such kind of brand which is persuading consumer decisions to purchase a Nike product with risk big.Good product, consumer feels superior with their whole satisfactory and tells someone about their satisfaction.Information search Internal search, memory. Providing ample information on Nike semiofficial site, internet, You Tube, in stores, on TV, radio, newspaper, magazine and public sources about the product.Task-33. A. Competitive AdvantagesNike, at the present time ahead from their competitors by achieving some competitive advantages through their products.Nike has cost effective management information system(MIS) and many management layer that helps to reduce the overall product cost.7Continuous training and development design increase the efficiency of workers.By using advance technology and sophisticated machineries they can produce product in a short time with low cost.They find out lowest price of raw materials and use cheap labour from under developing countries.Settin g up business near to the suppliers.Huge scale of operation all over the world and where by finding place they minimize manufacturing costs.Selling product in low price where many competitors are visible.Using cheap move carriers for product.Huge scale of advertising in those countries them running their business.Brand name, equity, image, credit entry and world reputation.Using popular athletes for advertising and recommending their products.Trade mark -just do it, write the future and patents.New product development.Giving chance customer to customize footwear in their own style through online.Strong and genius RD, HRM.These are the sustainable competitive advantages that keeping ahead Nike at top position of the market and helping them to take proper advantages from their competitors and achieving the consignment from the customers.3. B. Distribution StrategyIn fiscal 2009, Nike produced 100% of their footwear in china, Vietnam, Indonesia and Thailand and they distributed this footwear in their own countries as well as USA+ EMEA and Asia Pacific regions. Nike distributes their footwear to the retailers or whole sellers from straight to the factory or distribution centre all over the world through their own websites, direct mail or over the phone. In the distribution centre they inventory all their footwear and deliver them to different place in the world. Nike also uses agents, sales representative to distribute their product. So, in order to increase sales Nike has tried to wide their distribution channels. Not only this, Nike has used internet to distribute product by using virtual stores. They use containers and ships to deliver their product. Apart from, Nike uses future order program which help them to produce the product on time with lean production method and also help them to deliver just in time. Nike gives a good come of reduction on their product if resellers buy in a bulk size. Nike can take those steps in below to improve their distribution strategy.Need to build more small and large distribution centre to make product available.Need another centre in a particular area in case of fire or large number of small centres to spread risks.Back up IT system.Using very modern technology to produce, distribute and provide greater convenience and information.To reserve of time and space disappear should use online retailing.Using threshold to door service system.Cutting down production cost.Depending on the consumer behaviour, Nike should focus on the price instead of brand.3.C. PricingA full understanding of production costs, profit objectives, customers, competition, and other market information will help to realise the pricing strategy that best fits for Nike. With this information, the minimum price Nike can fight to break even and the highest price based on an estimate of customer demand. Here I am giving a demand curves for Nike that will help them to make price depends on the market demand.Price()Quantity Demanded ag gregate Revenue50100050000100800800001504006000020030060000First of all, Nike works out on diverse factors like market share, opposition, product uniqueness and perceived value of the product. In real segments they are charging unique prices cause of quality product. They use the premium pricing strategy-fixed price, where they are enabling by the product to maintain its standard in the market.Nike has uniqueness that gives themselves extra value to the consumer. Nike is a prestige product which is exceedingly demanded, where people shows their ability of buying Nike shoes. The image they made to the consumer about their brand which is influenced them to pay high price. If Nike wants then they can apply value base pricing strategy in certain segments.SalesInnovations Early transcriber early majority late majority laggards2.5% 13% 31% 35% 18.5%High price less expensive good demand well demand not much expensiveThen before good price better price70 65 60 50 40Consumers (100%)Here, Nike aerated high price at the beginning and plane the profit from the market which is helping them to achieve their objectives. They do huge advertisement to make the price acceptable to the consumers and persuade consumers to buy premium product.3D. Promotional strategyNike has great marketing communication techniques with high quality products and leal consumers which helps them to keep stay in the top position from a massive time. By doing campaign about the ability of men, women with new fashion, using famous celebrates athletes and teams for advertising which are such outstanding steps they have taken to keep good communication between them and consumers. They have signed top athletes from different background of sports like soccer- Ronaldho, Ronaldinho, basket ball- Michael Jordan, tennis- Rafael Nadal , golf- Tiger Woods, cycling and some of the other sports. Not only these they sponsor topical anaesthetic college students also.Nike uses new geographical area to promot e their new product. Advertising on the TV- write the future, just do it contains slogan, internet- YouTube and other sites, broadcast which helps them to break the geographical barriers and increase the ability to reach people on the other part of the world. Sponsoring in different social activities where people or players wear Nike logo contains dresses sales promotions like discounts, coupons and to keep good relation with the public they release their own pressure level and magazine and take part on the events. Apart from, different evasive action they use in advertising on TV which diverts consumer to visit internet to Nike website to see the finial ends.All those things are integrated Nike to meet its specific objectives in an efficient way. The objectives are included- new customers, new geographical areas, retaining the regular customers and pitch back the lapsed customers.Task-44. A. Marketing mixNike is mainly footwear company but they also produce other apparels and st uffs as well. So for this section my choice is Nike footwear. The two marketing mixes that I have chosen for Nike they are-Sponsoring eventsExhibitions or Fashion showsSponsoring events- Nike might sponsors different community events like as local sports team, by doing music concerts or sports quiz in the city centre, school sports days, boys scouts and girls guide events or local community events for kids to show off their products objet dart advertising the events as Sponsored by Nike. They could contribute some money there to make those events great to the people. Here, Nike aimed to target local communities and familiar themselves with Nike footwear, to make feel people price is not always a matter where brand, quality is visible and Nike is always with them in everywhere. Not only that, by doing this they can do some free publicity, can bring the attention and also can get opinions from different people.Fashion shows- Here, I am suggesting Nike to set 250-400 Nike fashion sho ws in posh restaurants to show and sell their fashions to the kind of people who can afford them. The restaurant wouldnt charge for entrance because it would bring them oodles of new people who had never been there before and they could sell food and refreshments. But Nike could charge a small entrance fee and give the money to a sports charity thereby getting extra free publicity. Nike would of course advertise these fashion shows in banners or newspapers or in the posters. By doing these Nike can target richer class of people and can make influence to buy Nike prestige footwear to show their personality, ability to buy such brand and expensive footwear like Nike.4.B.Marketing justice is a key success factor in virtually any industry or company focused on consumer products or services. specify what marketing excellence really means and how to mobilize the organization to achieve that goal, however, can be extremely challenging.Marketing products and services to organization has some good differences between them. For organization, marketing products are those activities that is related with products and a company does those activities until sell product to the end users. For Nike, they buy their raw materials from different producer in a bulk size. For example they produced shoes, in the perspective of organization they need to count its ownership for the product which includes with product delivery costs, safekeeping costs in stock and other costs like research and development etc. Not on these, they think about the quality as well. On this section organization buy product in bulk size in a very cheap price which is necessary. If unnecessary things bought by company which might affect the whole company in financially.On the other hand, marketing services are those work that company does to sell its product to actual consumer. On here, organization try to find out the way which will be useful to get/attract more consumers where it is imperceptible for ma rketing products. This is a common variability between marketing a product and service. Here, organization puts lots of move to make desirability of its consumer.4.C.In shortly, international marketing is a kind of marketing where a company setup his business in different foreign environment, consumer, laws and regulations. On the other hand, home(prenominal) marketing is all about running the business in the local/domestic market. In the feeling of Nike, there has many differences between those two markets.Cultural differences- Diverse and multi ethnic people who has different religion, taste, fashion, ideology and living standard.Different from social, economical, political and methods of doing business. state Nike in China is completely different form Nike USA from the policies and ways of doing business.Market- Wide market with a number of competitors, challenges, risks, complexities and expensive.Different currencies which can varies time to time.The rate of customs duty, VAT or sales tax charged on the product.Changes to the products because of standards, voltages or average sizes of the population.Different wording- Due to a language barrier it is more difficult to obtain and understand research information in international marketing. Promotional messages need to consider dozens of cultural differences between different countries. For example, for advertisement Nike uses different athletes depends on the country. By considering the differences in languages, expressions, habits, gestures, ideologies Nike develops their promotional messages.Those are some of the areas that makes difference between the international and domestic market for Nike.