Nike Core Marketing Strategy
Marketing is an important aspect of the Nike Company just like in any other company. Marketing denotes the process applied to promote and sell goods and services, carrying out advertisement and market research. The purpose of this paper is to elaborate on the key forces that drive the new marketing realities and how they are likely to change. The paper also addresses the pros, cons, and risks associated with Nike’s core marketing strategy and how Adidas would compete with Nike. Despite the competitive challenge and varying market dynamics, Nike has an effective marketing strategy to counter competition.
Three Key Forces likely to Change in the Future and other Major Trends on Marketing
Marketing reality is an actual approach to generate marketing leads. According to Kotler & Keller (2016), there are key forces driving the new marketing realities in Nike Company. The key forces include needs, wants, and demands. Needs are the basic requirements for humans to lead their daily lives such as food, air, clothing, and water. Other needs include the zeal for recreation, entertainment, and education (Kotler & Keller, 2016). Needs, demands, and wants to have the probability to change in the future following the dynamics in the business world. For instance, the clothing industry which provides basic needs – clothing such as Nike Company is facing stiff competition from other companies and hence, need to reconsider their products and services (Kotler & Keller, 2016). Additionally, various diseases have cropped in the world, which leads the victims to be restricted to the kinds of foods to eat. As a result, food companies will have to change their products’ ingredients to meet market demands. Other trends affecting marketing include marketing channels, competition, marketing environment, and information technology (Kotler & Keller, 2016). High technology development has enabled companies to create more competitive goods and services and hence the need for diverse marketing skills.
The Pros, Cons, and Risks Associated with Nike’s Core Marketing Strategy?
Nike’s marketing strength lies in the strategy it uses which is the ability to achieve the market goal. The company believes that the top athletes contribute to the “pyramid influence” on the brand choice and the product (Kotler & Keller, 2016). Nonetheless, such a marketing strategy has various pros, cons, and risks. One of the pros is that Nike’s marketing strategy puts into consideration the changes in consumer preferences and market trends in designing their products. Providing the right product at the right time enables the company to create a stable relationship with the customers and hence, establishing loyalty (Kotler & Keller, 2016). Such aggressive advertising has led to the enhancement of Nike’s brand image. A major con includes the high prices of the company’s products compared to those of competitors. Also, Nike depends on high profile athletes as its advocates (Kotler & Keller, 2016). In this regard, if such athletes imply negative impressions, it affects adversely the customers’ willingness to purchase Nike’s products due to perception factors. Besides, one major risk facing the company is the increasing number of competitors which prompts the need to diversify in the product line.
How Adidas Could Complete with Nike
If I were Adidas, I would reduce the products’ prices while maintaining quality. I would also invest in thorough global advertising and promotion of products which is a weakness with Nike Company. Further, I would set the goals of the company to indicate that Adidas is committed to embracing technology and innovation to enhance the athletes’ execution (Kotler & Keller, 2016). For instance, I would implement tech-shoes with a memory that records data about athletes’ workouts like calories burnt and body temperature (Kotler & Keller, 2016). While most athletes prefer products that provide for watching and bettering capacities, Adidas will pose solutions to these demands and hence yielding more profits and market share in sports.
Summarily, marketing is a key concept in achieving organizational goals. The marketing realities in Nike Company are driven by needs, wants, and demands. The marketing strategies of Nike Company embrace “pyramid influence” virtue which has pros, cons, and risks. In competing with Nike, Adidas would lower the prices and generate new products. Despite the competitive challenge and varying market dynamics, Nike has an effective marketing strategy to counter competition.
References
Kotler, P. T., & Keller, K. L. (2016). Marketing Excellence Nike: Marketing management (15th ed., p. 30-32). Boston: Pearson.