Marketing Orientation Of Nike


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Marketing Orientation Of Nike

"Marketing is the management process that recognizes, anticipates and satisfies customer requirements profitably"

In information on this explanation, marketing is a management process where all the actions and jobs are coordinated and performed by both individuals and equipment. By figuring out a group of customers their needs, passions and helps them to get goods in a reasonable price with good quality. Not only these, wanting them for next time and which can make business profitable.

The classification provided by the Philip Kotler is-

"Marketing is the interpersonal process where individuals and groupings obtain what they need and want through creating and exchanging products and value with others"

In this classification Kotler said, marketing is a interpersonal process means by exploring market identify the consumers the way they behave and frame of mind, consider and look at a product; how a particular product is good enough to satisfy buyer desires and needs; also how it is well enough to feel them grater to make and exchange with value for the product.

From my own definition-

Marketing is a managerial and communal process where company performs or does indeed activities to ensure and identify customer needs and wishes are fulfilled, satisfying them by creating products with the exchange of value through guaranteeing the profitability for the organisation.

1. B Marketing Orientation

The meaning of marketing concept for an company is that, they may be aimed all of it efforts to keep deeper themselves to the clients for fulfilling them by the products round the needs and needs and stay always a step ahead from their opponents. Basically the major objective is good for the organisation to create a centre of attention of their products to the clients.

Basically marketing orientation is an method of business that centres its activities to satisfy the needs and wants of its customers.

Marketing orientation is absolutely a good selection of activities where it's important to ensure that all the marketing studies are going to invent the customer needs and requirements.

The marketing orientation theory is dependant on the following three pillars-

Nike are highly customer-focused, heavily devoted and present the superior value for customers. These company stocks an absolute devotion to sensing, providing and gratifying the needs of customers in well-defined goal markets. They encourage everyone in the organization to provide high quality and superior value for their customers, leading to high degrees of customer satisfaction. These organizations know that if indeed they take care of their customers, market talk about and profits will observe.

1. C Selling Vs. Marketing Concept And Which Best Describes For Nike

Selling orientation is some sort of marketing activities where business tries to effect or persuade customers to buy their service or product. It perceives its work as getting the interest of potential prospects for his or her existing products and services

Marketing orientation is another part of marketing activities where in fact the company first concentrate on market, then make an effort to discover customer needs and needs, besides some coordinating activities to encourage consumers like rates, design, communication, appropriate delivery, competitive and profitable goods and services.

Nike is market oriented company because-

Nike has well understanding of its goal consumers to construct a greater value to them.

Has a good capability to adopt the tastes of consumers by time to time.

Does research on the competitors to see what strategies are they use to meet up with the customer's need.

Has good marketing strategies and provided the offer that they made with customers to give them high quality, appropriate features, design, styles and categories, right price products with availableness.

By satisfying the consumers needs/wishes Nike getting well publicized on the market place and attaining its objective by making profit.

1. D Implementation Of The Marketing Concept

The benefits are:

Knowing and understanding the changing needs, wants and wishes of sports athletes and customers to set-up new progressive products.

Look forward to market changes and take action very firstly to prospects changes.

Strong brand image with consistently increase the quantity of people satisfied.

Improve stakeholder benefits and maintain strong share beliefs.

Leading the marketplace with move forward thought and technology. (Nike+, Nike Free)

Market research gives a huge goal of product acceptability. ( product packaging and attractive fashionable design)

Sponsoring various superstar athletics personalities and certified teams who are being used to get concentration of customers on Nike products.

Easily take care of the criticism.

Powerful advertising of Nike products are creating better market for the company.

The constant improvement of the business's central competence.

The costs of implementing the marketing concept are:

Heavy investment in the marketing research and product development. (NSRL)

High costs of using the best people in their specialist areas.

Using world best players for advertising products.

Sponsoring different stars and professional groups in time basis.

Huge investment on product ad before launching in the market.

Different promotional costs - Television set advert, sales advertising and public connection.

Distribution costs - providing product in various channels.

Communication costs- dealing differently with a variety of different market segments.

Heavy cost of maintaining large and expensive website.

Task-2 2. A Macro And Micro Environmental Factor

Macro Environmental factor: Micro environmental factor can be an external factor that influences the company externally.

Social Factor

Nike brand and its slogan 'just do it' is very well recognized to people.

Consciousness of people about dieting and fitness.

Consumers are changing themselves from athletics to fashion focused.

Promotional advertising to obtain additional young customers where internet is using as female way to obtain information.

Sponsoring sports and clinics to make good sociable image.

Motivating women's, young consumers for leisure activities.

Technological Factor:

Effective use of computer in the section of marketing information system in every aspect of products from development to circulation.

It has progress technology to develop and research their product.

Has a great propensity to defend myself against new technology for the product.

Heavy design and condition of athletic sneakers.

Nike has NSRL (Nike Sports Research Laboratory) which is offer new ways to improve existing products.

Micro Environmental Factor:

Profit margin for Nike

5 years average:

46. 8% (Gross Margin)

9. 3% (Net Margin)

Structure- Nike has a matrix structure and there geographical structure includes with NAFTA (USA, Canada, and Mexico), European union, EMEA and Asia Pacific.

Technological development- For developing and executing idea Nike has APE, NSRL and it also has taxes expert economists which target in the reduced amount of future costs.

HRM- Orthopedic Experts, Rubber Technologists, Production Designers who are

Involved to discover the right people and product for the company.

Procurement- Nike will buy its recycleables in mass size, use labors and other services in the same countries where making occurs.

Inbound Logistics

China, Vietnam, Indonesia and Thailand.


Operating their business in more than 160 countries where almost all of the development is took place in China, Thailand, Indonesia, Malaysia, Vietnam, Turkey, Sri Lanka, India, Cambodia, Taiwan, Mexico and Israel.

Outbound Logistics

They sell their product to the stores, via internet and with 700 agreement shops in depends upon.


'Secret Tournament' campaign approach- Television set & internet advertisements, retails, consumers incidents, public relations.

Value String Analysis

2. B Segmentation Criteria Geographic Segmentation

"Geographic segmentation is about dividing the market within diverse physical part for example- in places, town, nations, countries and locations".

Nike footwear is absolutely famous in the part of EU, EMEA and Asia Pacific presently. The objective is to market this product in those continents where some particular sports activities is most popular. For instance, football, hockey, rugby is generally popular in Europe now-a-days. It is not much popular in south Asia so basically its footwear is publicized more generally in Europe. (Nike, 2009).

Demographic Segmentation

"Demographic segmentation divides on time, gender, race, job, income, nationality, family size and also on the amount of education".

Relating to era and income, they concentrate on peoples in variety age from young person to middle-aged people and the income series is actually from middle to higher class. By is determined by contest and gender they have broadly extended itself nationally. They actually advertise for men and women for every solitary race and nationality. Nike really doesn't show off themselves with young families but identify with groups. Teams of different athletics on the globe are targeted by Nike. It also did run advertisement plan called "stay in institution" in 1991.

Psychographic Segmentation

"Psychographic segmentation provides picture about cultural class, benchmarks, characteristics, and the life style- opinions, values, interests and principles of customers".

Nike uses athlete where it influences consumer to be interested on their shoes and boots. Nike promotes an optimistic and confident frame of mind, target always those varieties of people.

2. C Focus On Market

Young generation (bachelor level) between 18-30 years of age. Because they want to themselves appear to others to be fit, healthy and athletic

Because at this stage of age young people put together themselves to enter the work market. They are the technology X, they like fashion, athletics. Nike uses their sports activities celebrity to advertise footwear which is elegant and that make influences them to buy sneakers. "just do it", "write the future" are a few of slogan that make these X generation very extreme to do anything good and make the near future bright.

People between 30-50 years old, middle-high income social class.

These people have already been achieved somewhat in his/her life and they're now away from the turmoil of economy. They have got made their position, position in the contemporary society, needs to lead life gorgeously with prestige product like Nike. People can show of these status and capability of leading healthy life.

Nike advertises its products by using different ways and it focuses on a particular groups or types of individuals by advertisements. Nike targeted men in a manner that appeals to masculine values and women with attracts their prices. Women today want equality with men, to be observed as as able bodied and finally, both genders will buy Nike because it's expensive and shows that they have the funds to buy Nike, just as people buy Mercedes cars when a Fiat does the same job.

2. D Buyer Behaviour In Marketing Activities

I am going to discuss some marketing activities that should follow Nike to participate on buyer behaviour:

Psychological Forces

Motivation- Nike is a top brand with high quality design, style, price and sustained warranty which encourage visitors to buy Nike.

Perception- World reputation, brand image, high features and quality.

Personality- to show off with their friends and neighbours that they are fit, healthy athletic types and in a position to afford Nike's products.

Social Groups

Culture- produce different design product predicated on the culture.

Subculture- example-Air Jordan shoes specifically produces basket pastime, popular in North America- USA, Canada.

Social class- midsection and upper classes.

Reference group- Popular celebrities, teams and night clubs Nike adopt to influence consumer to buy their boots.

Family- Parents want to see their children are sports athletes, well equipped and healthy which affect them to buy Nike.

Situational Factors

World brand and popular products.

700 contract shops across the world where buyer can buy. (Over 18000 outlets in USA)

To show off people the position and capability to buy Nike.

New innovative, popular, 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 evoked place.

Nike has different features; design footwear's which can be specially different and ideal for particular work. (Sports, soccer, running, skateboarding, biking etc. ). When the consumers are unhappy on the previous product then they can try new every other model.

Nike has so many stores, different products/models, well packaging system and many convenient ways for consumer to buy.

Nike is certainly kind of brand which is persuading consumer decisions to buy a Nike product with without risk.

Good product, consumer feels superior with their whole acceptable and instructs someone about their satisfaction.

Information search Internal search, memory. Providing ample home elevators Nike formal site, internet, You Pipe, to get, on Television set, radio, newspaper, newspaper and public resources about the product.

Task-3 3. A. Competitive Advantages

Nike, at the present time ahead of their competitors by obtaining some competitive advantages through their products.

Nike has cost effective management information system(MIS) and many management coating that really helps to decrease the overall product cost.

Continuous training and development program boost the efficiency of workers.

By using advance technology and modern machineries they can produce product very quickly with low cost.

They find out minimum price of raw materials and use cheap labour from under producing countries.

Setting up business near the suppliers.

Huge range of operation worldwide and where by finding place they minimize manufacturing costs.

Selling product in low price where many rivals are apparent.

Using cheap transfer carriers for product.

Huge scale of advertising in those countries them working their business.

Brand name, equity, image, reputation and world reputation.

Using popular players for advertising and recommending their products.

Trade make -"just do it", "write the near future" and patents.

New product development.

Giving chance customer to modify sneakers in their own style through online.

Strong and genius R&D, HRM.

These are the lasting competitive advantages that keeping in advance Nike at top position of the marketplace and helping them to take proper advantages using their company competitors and attaining the commitment from the clients.

3. B. Distribution Strategy

In fiscal 2009, Nike produced 100% of their shoes in china, Vietnam, Indonesia and Thailand plus they distributed this shoes in their own countries as well as USA+ EMEA and Asia Pacific parts. Nike distributes their shoes or boots to the vendors or whole retailers from straight to the manufacturer or syndication centre worldwide through their own websites, immediate mail or higher the phone. Within the circulation centre they inventory all their boots and deliver these to different place in the entire world. Nike also uses agencies, sales representative to deliver their product. So, in order to increase sales Nike has tried out to wide their circulation channels. In addition, Nike has used internet to distribute product by using virtual stores. They use pots and ships to provide their product. Aside from, Nike uses future order program that assist them to create the product on time with lean creation method and also help them to deliver just with time. Nike gives a good amount of lowering on the product if resellers buy in a mass size. Nike may take those steps in below to boost their syndication strategy.

Need to construct more small and large distribution centre to make product available.

Need another centre in a specific area in case there is fire or large number of small centres to disperse risks.

Back up IT system.

Using very modern technology to produce, spread and provide better convenience and information.

To constraint of energy and space go away should use online retailing.

Using door to door service system.

Cutting down creation cost.

Depending on the consumer behaviour, Nike should focus on the price instead of brand.

3. C. Pricing

A full understanding of production costs, revenue goals, customers, competition, and other market information will help to determine the pricing strategy that best will fit for Nike. With this information, the least price Nike may charge 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 assist those to make price is determined by the market demand.


Quantity Demanded

Total Revenue













First of all, Nike computes on diverse factors like market talk about, opposition, product uniqueness and identified value of the merchandise. In certain sections they can be charging unique prices cause of quality product. They use the top quality prices strategy-fixed price, where they are really enabling by the merchandise to maintain its standard on the market.

Nike has uniqueness that provides themselves additional value to the consumer. Nike is a prestige product which is highly demanded, where people shows their potential of shopping for Nike shoes. The image they designed to the buyer about their brand which is affected those to pay high price. If Nike would like they can apply value base pricing strategy using segments.


Innovations Early on adaptor early majority late bulk laggards

2. 5% 13% 31% 35% 18. 5%

High price less expensive good demand well demand very little expensive

Then before good price better price

70 65 60 50 40

Consumers (100%)

Here, Nike charged high price at the beginning and skimming the benefit from the marketplace which is aiding them to achieve their objectives. They certainly huge advertisement to help make the price satisfactory to the consumers and persuade consumers to buy high grade product.

3D. Promotional Strategy

Nike has great marketing communication techniques with high quality products and dedicated consumers which helps them to keep stay static in the top position from quite a while. By doing marketing campaign about the power of men, women with new fashion, using famous celebrates sportsmen and teams to promote that happen to be such spectacular steps they have taken to keep good communication between them and consumers. They have got signed top players from different qualifications of sports like sports- Ronaldho, Ronaldinho, container ball- JORDAN, rugby- Rafael Nadal, golfing- PADRAIG HARRINGTON, cycling and some of the other sports activities. Not only these they sponsor local school students also.

Nike uses new geographical area to promote their new product. Advertising on the TV- 'write the future', 'just do it' contains slogan, internet- YouTube and other sites, broadcast which helps these to break the geographical barriers and raise the ability to attain people on the other side of the world. Sponsoring in several social activities where people or players wear Nike company logo includes dresses; sales marketing promotions like discount rates, coupons also to keep good connection with the general public they release their own press and newspaper and take part on the occurrences. Aside from, different methods they use in advertising on Tv set which diverts consumer to go to 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 goals are included- clients, new geographical areas, retaining the regular customers and having again the lapsed customers.

Task-4 4. A. Marketing Mix

Nike is principally footwear company nonetheless they also produce other apparels and things as well. So for this section my choice is Nike footwear. Both marketing mixes that I've chosen for Nike they are-

Sponsoring events

Exhibitions or Fashion shows

Sponsoring occurrences- Nike might sponsors different community occasions like as local activities team, by doing music concerts or sports quiz in the town centre, school athletics days, boys scouts and girls guide incidents or neighborhood occasions for kids showing off their products while advertising the events as 'Sponsored by Nike'. They could contribute some cash there to make those happenings great to the people. Here, Nike aimed to target local communities and familiar themselves with Nike shoes or boots, to make feel people price is not necessarily a matter where brand, quality is visible and Nike is actually with them in all over. Not just that, by doing this they can do some free publicity, can bring the interest and also can get views from differing people.

Fashion shows- here, i am recommending nike to set up 250-400 nike fashion shows in posh restaurants to show and sell their fashions to the type of men and women who are able them. The restaurant wouldn't ask for for entrance since it would bring them loads of new people who had never been there before plus they could sell food and refreshments. But nike could demand a small entry fee and give the money to a activities charity therefore getting extra free promotion. Nike would of course advertise these fashion shows in banners or papers or in the posters. By doing these nike can aim for richer class of men and women and can make affect to buy nike prestige boots showing their personality, potential to buy such brand and expensive shoes like nike.

Marketing superiority is a key success element in virtually any industry or company focused on consumer products or services. Defining what marketing brilliance really means and the way to mobilize the business for doing that goal, however, can be extremely challenging.

Marketing products and services to organization has some good differences between them. For corporation, marketing products are those activities that is related to products and a corporation does those activities until sell product to the end users. For Nike, they buy their recycleables from different company in a volume size. For example they produced shoes, in the point of view of organization they have to count its ownership for the merchandise which includes with product delivery costs, keeping costs in stock and other costs like research and development etc. Not on these, they think about the quality as well. Upon this section corporation buy product in mass size in a very cheap price which is essential. If pointless 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 learn the way which is useful to get/attract more consumers where it is imperceptible for marketing products. This is a standard divergence between marketing a product and service. Here, corporation puts lots of attempt to make desirability of its consumer.

4. C.

In soon, international marketing is some sort of marketing where a company setup his business in various foreign environment, consumer, laws and regulations. Alternatively, domestic marketing is all about running the business in the local/local market. Inside the aspect of Nike, there's many distinctions between those two market segments.

Cultural distinctions- Diverse and multicultural people that has different religion, style, fashion, ideology and living standard.

Different from cultural, economical, political and ways of doing business. Suppose Nike in China is totally different form Nike USA from the regulations and means of doing business.

Market- Huge market with lots of competitors, obstacles, hazards, complexities and expensive.

Different currencies which can varies time to time.

The rate of traditions work, VAT or sales tax charged on the merchandise.

Changes to the merchandise because of specifications, voltages or average sizes of the populace.

Different terms- Due to a language hurdle it is more difficult to acquire and understand research data in international marketing. Promotional text messages need to consider a large number of cultural differences between different countries. For example, for advert Nike uses different players depends on the united states. By taking into consideration the differences in languages, expressions, behaviors, gestures, ideologies Nike evolves their promotional information.

Those are some of the areas which makes difference between your international and home market for Nike.

Originally published Oct 20, 2018, updated Feb 25, 2021

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