Marketing Management of Nike Essay Example | Topics and Well Written Essays - 1750 words

Marketing Management of Nike - Essay Example Price Nike has a premium pricing strategy and its products are largely targeted towards the premium customers (Axelby, 2003:89). The company attributes and justifies its pricing strategy by providing high quality products to the customers. The formidable brand image of Nike also acts as a decisive factor in formulating the pricing strategy. Due to the formidable brand image of the product, the customer is quite willing to pay a premium for the products of the company as it has made a distinction for quality across the markets globally. Place Nike has a multi-channel distribution strategy in which the company uses both the direct as well as the indirect channel for distribution. The company ensures a combination of all vertical channels in an attempt to amalgamate them for distribution. The company has a bricks and clicks format that involves selling products through retail outlets (both company owned and multi-brand retailers) as well as through e-commerce websites. However, the indi rect form of distribution is the primary channel of sales considering the fact that it helps in providing more value to consumers. It also gives a tangible touch to the service offering generating competitive advantage (Baiker, 2007:32). Promotions Promotions are the most vital aspect of the marketing mix of Nike as it forms the only channel of communicating with the target market audience. The promotions strategy of Nike involves use of both traditional and online channels for communication. Traditional channels include advertisements on television and print media while online channels involve use of various social networking sites.... According to the research findings, it can, therefore, be said that the era of globalization has not only opened up new vistas for business organizations but has also created a high competition in the business markets with organizations reaching out to every market where opportunities are available. In this regard, ensuring a formidable positioning and a good marketing mix is an essential aspect that is needed to survive in this tough competitive environment. In order to remain sustainable in the market and stay ahead of the competitors, it is very essential to have a product mix that ensures a formidable image of the products or the brand in the minds of the target market segments. It is also very important to analyze the consumer behavior of the target market audience so as to have an idea about the needs and wants of the consumers. This is important as it defines the positioning of the brand which is very critical to the success of the company. The most important duty of the compa ny is to generate highest return to its shareholders that forms the ultimate aim of any organization. In this regard, the company has followed a strategy of expanding rapidly into international markets, and also seeks to formulate strategies such as outsourcing in a manner so as to help reduce cost and generate greater efficiency that can be ultimately generated as profits to be passed on to the shareholders.