Marketing Exam 1

University of Business and International Studies

MKTG 606

Spring 2021

TOIVINO KAIS JUNIOR MASSAMBA

1. On the Basics:

We have asserted that marketing is really the strategic idea of connectedness with customers.

From the perspective of your final project company, identify and discuss how your company

connects with its customers – select from either the marketing concept or the selling concept. Be

sure to define each concept and be detailed in your response.

When shoppers walk into the Nike flagship store in New York and log into the app, the company

knows who they are, what sizes they wear, what sports they play and what colors they prefer.

Nike utilizes marketing concepts rather than selling concepts in its approach to customers. if it

were to a do otherwise it wouldn’t be as successful as it is today.

Selling Concept: Selling orientation is a kind of marketing activities where business tries to

influence or persuade customers to buy their product or service. It sees its work as getting the

interest of potential customers for their existing products and services.

Marketing orientation is another part of marketing activities where the company first target a

market, then try to discover customer needs and wants, besides some coordinating activities to

convince consumers like pricing, design, communication, appropriate delivery, competitive and

profitable goods and services.

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Nike has well understanding of its target consumers to construct a greater value for them. Has a

good capability to adopt the taste of consumers by time to time.

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

Has good marketing plans and delivered the promise that they made with customers to give them

high quality, appropriate features, design, styles and categories, right price products with

availability.

By satisfying the consumers’ needs/wants Nike getting well published in the market place and

achieving its objective by making profit.

b. Referring to your project company provide a well-developed characterization of your market

segment and your target market.

Within my project company, Nike’s main target market presumes to be “all athletes”. Nike’s

primary market segment is indeed the athletic footwear and apparel industry. While this may be

the case, Nike strategically uses market segments to target various other parts of the market

demand.

Reviewing the major segmentation variables, Nike has characterized it’s target market heavily

relying on demographic, psychographic as well as behavioristic variables. The brand targets

customers according to their age, gender, occupation, interests and generation. The age group Nike

focuses on is between 15-40 years old. Nike caters to both men and women. Nike is able to target

the teenager market with their partnerships with professional athletes. Endorsements with NBA

players for example, connects to young adults as they idolize the motivation and success that is

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linked with Nike products. This approach heavily reflects their behavioristic approach as well.

Making the customer FEEL a bond with the brand is what Nike is all about.

could also add geographic based on the popularity and how dominant a sport is in the

country

Through psychographic segmentation, Nike successfully reaches out to a demographic that is tied

in by their specific lifestyles and personalities. Whether its targeting women who enjoy the newest

trend of “athleisure” or individuals who want to motivate themselves through Nike products, the

brand has something for everyone. Nike products are meant to make the consumer feel the best

version they want to be. Through these marketing strategies Nike has ultimately created loyalty

amongst its demographic.

i. Identify the most urgent issue necessary for you to penetrate or protect your desired

market space.

Nike heavily relies on its endorsements with athletes, especially its infamous sponsors such as

NBA players. These affiliations have played a huge role in Nike’s success with its consumers and

continue to do so. However, as the years have gone by, Nike isn’t the only brand NBA players are

rocking these days. Under Armour is the second-largest sportswear company next to Nike today.

Stephen Curry has been Under Armour’s new face in the NBA world and this may be bad for Nike.

If popularity grows, and soon enough athletes start switching over partnerships like these can affect

Nikes business as well as brand image.

c. Lastly, concisely address each of the following central positioning questions pertaining to your

project company/brand (pull from Positioning to support your response):

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i. What position, if any, do you already have in the prospect’s mind?

Nike is known to be the best. Being the leader in sporting goods and over a hundred other countries,

Nike has dominated its industry as a top selling brand. It has become a passion amongst its market

to use the Nike brand and their slogan to “Just Do It” to push them past their limits in competitions.

ii. What position do you want to own?

While Nike has done and continues to do a phenomenal job with their innovative products,

distribution and exceptional marketing the brand must shift some of its focus to the women’s

market. Attempts to appeal to the women’s business have resulted in successful results in the past

10 years however; competing brands such as Lulu lemon athletica, under Armour and Adidas have

recognized women sales as a driving market for revenue growth. Athletics have been a primary

focus for the company yet there is a huge demographic of possibly yoga inspired apparel that Nike

might missing.

iii. What companies must be outgunned if you are to establish or maintain that position?

In order for Nike to continue dominating the sportswear industry, I believe it needs to maintain the

direction it’s going in currently. The company value and investment shares have sustained Nike’s

positioning. Their exceptional marketing strategies separate them from the competition. First and

foremost, Under Armour is the second runner up next to Nike in the business and Adidas is at a

close third.

On the Marketing Mix: Discuss the strengths and weaknesses of your company’s marketing

mix and offer strategic recommendations on how the company should handle the most

burning marketing problem/opportunity impacting the strategic performance of the ‘mix’.

Consider shaping your answer with the 5Cs in mind.

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Nike’s effective marketing mix supports the brands positioning in the target market. In terms of

the 5 C’s in mind, one of the company’s strengths is found within the Product/Customer solution

aspect. The brand has a strong market presence and has many products available. Nike’s designs

are innovative and improve with every release, whatever athletic need it may be there is definitely

a product designed for it. Customers are satisfied and ensured with the variety made available to

them where and how they choose to spend their money. Demand is never stable and it is never the

same. Since trends come and go, in the sportswear industry consumers are bound to change their

taste. However, Nike is known best for its ability to sustain it’s positioning in the market by being

every customers first choice when it comes to athletic apparel and footwear. There is yet a

weakness that can be discussed in terms of Nike’s pricing that represents the customer cost. Since

Nike has such a prevalent market presence, its products come with a price. The high technical

performance and symbol of status Nike now holds in the prospects mind allows it to have

demanding prices gaining a “high end” appeal. Keeping up with competitors can result in

fluctuations in prices however, Nike’s prices stay consistent in a certain range to maintain customer

loyalty along with the brand integrity. Price reduction as a result of a response to competition can

sometimes be an indicative of compromised quality. To avoid this Nike maintains its price range

and high-end status. Nike heavily relies on its Promotion/Customer communication through its

marketing outlets. Advertising is one of the most used methods. Conducted through television,

radio, online and magazines are just to name a few. Nike has influenced the market through the

power of ethos found within the brands slogan “Just Do It”. Building an emotional connection

with the consumer allows the company to send a message the viewer will also remember and more

importantly, buy into. The messages shown through these advertising outlets catch the viewer’s

attention and keep their interest. Nike sells the brand, not the product itself. The intent to convince

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the buyer that their brand is what they want. By showing the benefits of Nike products and what

they can do for the consumer sends the message. Nike promotes taking chances and risks in order

to win. Therefore the right messages targeted the right way attract and maintain the right audience

for Nike. In comparison, Nike is moving towards developing itself as a fashion brand (similar to

adidas). Adidas holds a more chic look since Nike is predominantly all athletic based. Adidas’

lavish fashion collaborations and headlining projects make it more appealing in pop culture,

however needless to say Nike still owns almost half of the sportswear market share. Nike appealing

as a fashion brand will attract individuals who are looking to invest in the brand however do not

participate in any sports.

On Consumer Buying Behavior: a. Referring to your company, describe a scenario of your

typical customer using the buyer decision process when considering purchasing your

company’s product/service. Use the language from our readings.

i. Consider pulling from your database research offered in our library workshop to

authenticate how your customers behave in your market environment.

Need recognition/Perceiving a need – This is the most important step and needs to be recognized

in order to begin the buyer decision process. A purchase cannot be placed without the recognition

of a need. Whether the need is stimulated by outside factors or a decision that has been made prior,

every customer passes through this stage. A typical customer for Nike would probably be a

returning consumer due to the brands significant customer loyalty. Individuals purchasing Nike

are repeated buyer since they buy into the brand and look for future needs. A buyer might need a

new pair of running shoes and decided to look into the most famous line of shoes. However this

need to search further is triggered by personal preferences and a certain desire. Search for product

information - Looking for a product, consumers usually rely on in-store interactions, online

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websites, and possibly word of mouth which are external sources to find what they’re looking for.

Nike along with other companies nowadays are able to provide every possible detail of a product

from its dimensions, origin and production; Nike can answer all product related questions.

Throughout the consumer’s research stage, the consumer may also rely on internal sources such

as past experiences and memories tied to a brand. Evaluation of alternatives – Once sufficient

information is collected the consumer is now capable of different alternatives available in the

market. A customer making the decision to buy Nike would consider the following factors: Price

range, color, size needed, trend, price of other company shoes etc. In this step personal preference

plays a huge role. Looking into commercials, others experiences as well as looking into reviews

on line can be beneficial when making this decision. (Impulse and intuition) The amount of time

can vary according to the magnitude of the purchase however in this case the customer is looking

into a pair of shoes. Purchase Decision – This step inches towards the final purchase by the

consumer. While the customer has identified the need and want, performed the necessary research

and evaluated alternatives – this step may be influenced by outside factors. A common factor may

be how will others perceive the brand through this purchase. Will the consumer enjoy this pair of

Nike’s? And will others approve of their decision. Another factor is unexpected situational

occurrences such as, price competition. Under armour or Adidas may be selling a similar or even

better product for less. Post-purchase behavior – Once the purchase has been made for the pair of

Nike’s the consumer will evaluate how their experience has been with purchasing, wearing and

now owning the product. This step determined whether they are satisfied with their decision and

whether they will continue to shop with the brand. Many outcomes may result from this step such

as recommendation of the shoes to other people or expectations may be surpassed leading the

customer to become a loyal consumer.

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Relative advantage

The degree to which an innovation is perceived as being better than the idea it supersedes. Nike

dominates the sportswear industry on a global level. Not only in its revenue shares but in the mind

of the consumer as well. Nike successfully displays its brand as a performance to which consumers

buy into. Wearing Nike means being the best and being the best is winning.

Complexity

The degree to which an innovation is relatively difficult to understand or use. Nike’s products and

their features are easily accessible to every individual around the world. The company has built a

consumer base in the US and a hundred other countries. Due to its reach, Nike is a brand image

that is accepted and cherished by a wide range demographic.

Divisibility

The degree to which an innovation may be tried on a limited basis. Nike similar to other sportswear

brands due to being retail fully allow the consumer to try the product out. Whether its sitting in-

store and trying different pairs on or ordering online and having a minimum day return policy.

Nike ensures the consumer has the luxury to try all products first.

Communicability

The degree to which the results of using the innovation can be observed or described to others.

Satisfaction with a purchase from Nike can lead to further purchases with the brand and even,

recommendations to other potential customers.

Strengthen:

Compatibility

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The degree to which an innovation is perceived as consistent with consumers’ existing values and

past experience. The company has always been the first and foremost to amaze the market with

their innovation and style. However, Nike is ranked pretty high on the charts for their pricing. In

a price competitive market, Nike’s products are not deemed as affordable. Due to the quality and

integrity of the company, its products are titled as high-end. This may not appeal nor correlate with

every consumer’s price range. Nike could consider reevaluating prices without jeopardizing the

quality and brand image.

4. On Branding and the Product Lifecycle:

a) Identify and discuss the central features of your company’s brand vision, brand personality, and

brand position – be specific The brand vision by Nike is to bring inspiration and innovation to

athletes around the world. Its personality is that of the athlete, especially confidence (arrogant) and

competiveness; seen in its sponsored athletes. Its position is that of an athletic lifestyle and high

quality.

The brand overall is in the middle. Some lines have declined such as Nike Running. However,

Nike Basketball is still rising even with the competition slowly coming close. The company needs

to continue sponsoring young athletes who are going to be superstars as well as reaching out to the

young kids in college.

Recalling our theme of brand’s driving business and marketing, clarify your project company’s

brand vision, brand personality and brand positioning – be specific as you describe this important

brand management model.

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Positioning: how do you plan on keeping the brand upheld. Staying close to sneaker websites,

social media. Sponsor more basketball events. Have more young additions to sponsorships, more

sponsorship of other teams.

Reference

Frank Neuhausen (2012), Marketing of Nike. An Analysis of Relationships with Customers and

Suppliers, Munich, GRIN Verlag, https://www.grin.com/document/318400

Ramaswamy, Venkat. (2008). Co-creating value through customers' experiences: The Nike case.

Strategy & Leadership. 36. 9-14. 10.1108/10878570810902068.

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