Question

Provide a summary of marketing tactics & strategies currently used by Nike. Provide an overview of the marketing strategies -- how resources are allocated and utilized. You may want to create a list of tactics in use with a short summary of how each tactic is used in your organization today.

Answer 1

Nike is undoubtedly one of the best companies who is achieving greater heights due to its marketing strategies. This company understands its target market like nobody else. However this does not mean that the target market is small in size. This market ranges to all age groups and for both men and women.

The strategy that NIke uses is that it sells an idea and not a product. The idea is being "cool" and being "fit" with the innovative, exciting products that NIke presents.

The psychological understanding behind Nike is that it focuses on the changing consumer psychology from the time it was invented. Nike understands that selling a product by its features and price tags would not cater to many. However, making a story of the products would touch people's heart. This is the emotional aspect of the Nike advertisements which are generally followed by motivational quotes, is adored by all. So NIke doesn't only sell products, it sells dreams.

This psychological strategy used by Nike is called as Emotional branding which seeks both self-loathing and customer loyalty. The Nike advertisements focuses on the "Hero" that is portrayed in them. Many other brands also adopts this strategy. However, Nike still stands unique. The reasons being:

1. Nike's Heroes are from everyday life and therefore people can connect to them better.

2. The enermies of this Hero are not external enemies like in most advertisements, however it is more internal such as our low self confidence, lack of determination, etc.

Other important tactics used by Nike are:

1. Market Segmentation: Nike has a specified target group, who are bound by a common goal, that is physical fitness and sports.

2. Pricing Strategy: Nike forms an image of itself wherein the customers believe in the product intimacy more than the product price. The high prices of Nike products is a way of maintaining their product value.

3. Distribution Strategy: Nike uses an umbrella of distribution strategies. The high priced Nike products are placed in certain stores that attract the higher-earning belts whereas the comparatively cheaper products are placed in different stores. This is a strategy that gives Nike an edge over others in the market.

4. Promotional Strategy: It can be seen from the number of celebrities who are engaged in Nike's promotions. From Ronaldo to Tiger Woods, a range of sports and athelets are promoting Nike to be the brand behind fitness. This definitely catches customer attention and also keeps up the high-end brand image.

Therefore, in conclusion we can say that with these tactics Nike is just doing it right.