...It is expected to reach $73.5 billion by 2019. The biggest reason for such growth is projected increases in revenue derived from media rights deals, which is predicted to surpass gate revenues as the sports industry's largest segment.(Forbes , 2013 ). Nike is the most valuable sports brand in the world, worth $15.9 billion (excluding its autonomous brands like Cole Haan, Converse, Umbro, and Hurley), an increase of $1.4 billion, or 9.7%, since our first Fab 40 in 2007. That means the Nike name accounts for over one-third of the athletic gear maker's market value. Sales of Nike-branded merchandise in fiscal 2012 were $21.8 billion( Forbes , 2013...
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...Wrexham, UK 15th November, 2012 To, The Marketing Director Nike, UK Subject: A study of changes in the Sportswear market in India in the past decade with focus on footwear sector. Analysis and suggestion about the marketing techniques that need to be implemented for the launch of a new product. The study also includes formulating a Pricing strategy and various promotional measures to be opted by Nike. In today's competitive market, companies always try to introduce different types of products and creative marketing approaches so as to showcase the uniqueness in their products and to survive in the dynamic marketing environments. Nike, the American multinational company is a leading manufacturer and supplier of sportswear, apparel, accessories and services and holds the top spot in supplying athletic shoes and apparel throughout the world. The company, today is among the most valued brands. (Skoloda, 2010) The product is due to be launched in India, which holds the top spot in terms of being among the fastest growing economies in Asia and is the most preferred markets for multinational companies. Indian economy is growing at 8.8%, which is among the best in Asia. (Nobrega & Sinha, 2008) Changes in the Sportswear market over the last decade: As Isaac Asimov once said “The only constant is Change” so is it. The current markets are ever changing. Philip Kotler & John Caslione (2009) state that “Turbulence is the new normal”. Companies...
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...Murad Tahirov Marketing Spotlight-Nike The Nike story begins with its founder, running enthusiast Phil Knight. In 1962, Knight started Blue Ribbon Sports, the precursor to Nike. At the time, the athletic shoe industry was dominated by two German companies, Adidas and Puma. Knight recognized a neglected segment of serious athletes whose specialized needs were not being addressed. The concept was simple: Provide high-quality running shoes designed especially for athletes by athletes. Knight believed that "high-tech" shoes for runners could be manufactured at competitive prices if imported from abroad. Without much cash to do any advertising for his products, Knight crafted his "grass roots" philosophy of selling athletic shoes: Speaking to athletes in their language and on their level; sharing their true passion for running; and listening to their feedback about his products and the sport. Each weekend Knight would travel from track meet to track meet – both high school and collegiate competitions--talking with athletes and selling Tiger shoes from the trunk of his green Plymouth Valiant. The company's commitment to designing innovative footwear for serious athletes helped it build a cult following that rapidly reached the American consumer. By 1980, after just under two decades in the business, Nike had become the number one athletic shoe company in the United States. Unfortunately for the company, this wave of success was soon to crest as rival companies...
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...Cons and risk associated with Nike`s core marketing strategy? Answer: Nike’s Core Marketing Strategy: Nike's excellence marketing strategies are their energy to achieve their market goals. Nike believes the "pyramid influence" that the preferences of a small percentage of top athletes influence the product and brand choice. So Nike contracted with many athletes' spokesperson, professional teams and college athletic teams to advertise and promote their products to customers. One renowned example of Nike marketing strategy is during 2008 Summer Olympics in Beijing. Nike received special permission from the International Olympic Committee to run Nike ads featuring Olympic athletes during the games. In addition, Nike sponsored several teams and athletes, including most of the Chinese teams’ and11 of 12 high profile members on the US men’s basketball teams. Nike seriously pays attention on the technology producing, design and selling such as e-commerce, high-tech running shoes, Nike+ with Apple, etc. Nike outsourcing their products most of the factories are located in Asia such as China, Indonesia and India. Pros and Cons of Nike Core Marketing Strategy: Pros: Nike put heavily proportion in their marketing strategies and products deign. In order to sustain their dominance in the industry and retain their competitive advantages, Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product offerings...
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...Nike, Inc is an American company started by Bill Bowerman and Phil Knight. Based out of Beaverton, Oregon, Nike was founded in 1964 under the name Blue Ribbon Sports. Bowerman and Knight changed the name of the company to Nike after the Greek goddess of victory in 1971. The Nike company designs, develops, and manufacturers athletic and active wear products including footwear, apparel, equipment, and accessories. The company started with one pair of running shoes and has grown into a multinational billion-dollar business that provides everything one may need to be active. Nike's success is in great part to the company's strong and ever evolving marketing strategies that continually meet the needs of their target demographics in unique and emotional...
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...Mobile Marketing Netflix One brand reaching out perfectly to Millennials is Netflix. In recent years, Netflix decreased the amount of money spent on paid advertising in the U.S. across traditional media and instead is spending marketing dollars online, particularly on mobile devices. Netflix’s efforts to be more digital and content forward in their marketing has shown favorable results. The company spent about $121 million on advertising last year, down from $143 million in 2013 and $218 million in 2012, according to Kantar Media. As the cost of advertising has decreased, subscribers increased by 4.88 million last quarter, shares recently increased to a record $560.24, subscribers have topped 62 million worldwide and 75% of millennials with connected televisions are using them to watch Netflix. Netflix expands their brand reach and promotes their content to millennials through the use of mobile and social media campaigns focusing on Netflix’s original series. Millennials want to share what movie or TV shows they’re watching. Netflix offers an app designed to celebrate their original shows and interact with its fans. For the season premiere of “Orange is the New Black”, a prison show, the app enabled users to insert their face into mugshots before sharing them via social media or SMS. According to research by ListenFirst, the series was a popular topic on social media in the weeks leading up to the premiere, with 124,000 uses of the show’s hashtag on Twitter in the three...
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...Repositioning Paper Abstract This paper will identify the marketing plan for repositioning a new product line being discussed at Nike, Inc. called Nike Adventures. Nike Adventures is an entire line made with kids and their families in mind to get them active and mobile. Introduction Obesity in children is starting to become headline news in the United States. Therefore, Nike has decided to incorporate the NikeGO Program with a line designed with primarily children in mind. This paper will examine the marketing segments being targeted for this new line. The goal is to ensure that the proper marketing strategies are initiated and that a strong market does exist to carry this line to its full growth potential. In this paper, marketing mix strategies, possible tax ramifications, elements of the consumer decision-making and post-purchase process are discussed, and a criteria and timetable for measuring the success of the repositioning strategy is developed. Discussion: What is Nike Adventures? Provided by the official website of NikeGO Program, the program and this new line of products called Nike Adventures have the same, simple mission: “Get kids moving and give them the means to do it. We've all seen the statistics - some very disturbing. No matter the causes -- school funding cuts, lack of phys-ed programs, shortage of facilities, computers and the Internet, or plain old apathy - the unvarnished truth is...
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...Under Armour is an athletic apparel company that specializes in creating performance-enhancing clothing using moisture-wicking material. Despite its growth over the past decade, Under Armour has failed to really challenge other athletic apparel companies, such as Nike, due in large part to their lack of a women’s product line, an athletic shoe line, and global presence. Bruce Horovitz discusses Under Armour’s shortcomings in his article, “Under Armour races to discover fitness gear.” He states, “Its first shoe line got a black eye, its line of women’s clothing was initially slow to catch on, and for an athletic-wear maker that wants to be taken seriously, it has a miniscule international presence,” (Horovitz par. 1). Despite Under Armour’s growing success, the company still pales in comparison to Nike because they fall short in those three areas. By exploring the market for women’s apparel, creating an effective athletic shoe line, and expanding globally, Under Armour will finally be able to mature as a company and solidify itself as a contender to Nike. History In recent years, Under Armour has exploded onto the athletic apparel scene through the use of innovative technology, creativity, and effective marketing. The company’s mastery of moisture-wicking material revolutionized the athletic apparel industry and allowed Under Armour to succeed in such a competitive environment. Although the company now finds itself engulfed in success, it had a rather humble beginning. ...
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...Question 1: What are the pros. Cons and risk associated with Nike`s core marketing strategy? Answer: Nike's excellence marketing strategies are their energy to achieve their market goals. Nike believes the "pyramid influence" that the preferences of a small percentage of top athletes influence the product and brand choice. PROS OF NIKE'S CORE MARKETING STRATEGY: Nike put heavily proportion in their marketing strategies and products deign. In order to sustain their dominance in the industry and retain their competitive advantages, Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through various marketing strategies. CONS OF NIKE'S CORE MARKETING STRATEGY: Although Nike's marketing strategies had brings lot of positive implications to the company, but it will bring negative implications to Nike too. The negative implications that will identify in this assignment are high cost incurred, influence of spokesperson, and competitors. RISKS OF NIKE'S CORE MARKETING STRATEGY: Nike faces many risks when they use their core marketing strategies to achieve their goals and these risks can come from both internally and externally environmental circumstance. The risks will have a negative influence about Nike's future development, for example, the market share in the world, reputation...
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...Defining Marketing William Bice MKT/421 17 April 2014 Michael Bishop Marketing Defined Marketing plays a significant role in any successful business endeavor. Marketing is the way a business introduces products and services to potential customers. This introduction is the beginning or sustainment of the businesses relationship with its customers. The most powerful and successful marketing strategies can even have an effect on social behavior and attitudes. Effective marketing strategies often instill a feeling that somehow the target audience will be better off, or have a better life if they would just go out and purchase their product. Additionally some marketing strategies can instill a feeling perhaps guilt in would be customer that they are somehow missing out, or may not be the best person they can be unless they purchase the product. Shoes for example may imply an improvement in a customer’s athleticism. Or perhaps a pain reliever will work better than the rest. Maybe one of the most common marketing strategies is the promise of lower prices. According to “The American Marketing Association” (2013), marketing is defined as “the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (Definitions). The “Merriam Webster” (n.d.) website defines Marketing as “Activities that direct the flow of goods and services from producers to...
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...Chapter 5 - Attention and Comprehension Exposure to Information ❖ Critical for consumers’ interpretation processes. ❖ Two types of exposure to marketing information are intentional and accidental exposure. ❖ Levels of intentional exposure to marketing information are rather low. ❖ Most exposures are random that occur as consumers move through their environments and “accidentally” come into contact with marketing information. Selective exposure to marketing occurs when: ❖ Consumers become more adept at avoiding exposure. ❖ Consumers do not maintain accidental exposure to marketing information. Attention Processes ❖ Attention implies selectivity. ❖ It connotes awareness and consciousness. ❖ Attention also suggests intensity and arousal. [pic] Factors Influencing Attention ❖ Affective states (consumers who are in a bad (or good) mood are more likely to notice negative (or positive) aspects of their environment. ❖ Low arousal reduces the amount and intensity of attention. ❖ A state of high affective arousal can narrow consumers’ focus of attention and make attention more selective. ❖ Involvement (Ex. Joe desperately needs a new pair of shoes for a wedding in two days) tend to focus their attention on marketing stimuli that are relevant to their needs (shoe ads and shoe stores) ❖ Motivational state guiding stimuli selection for focal attention and comprehension. ...
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...Assignment #4 Internet Technology, Marketing and Security Professor Demetrius Carolina, Sr. Bus 508-Contemporary Business March 2, 2013 An online presence is vital for today’s businesses the use of internet and social networking in the workplace has grown substantially over the last few decades. Because of this, individuals are now using the internet in various ways. Technologies such as social networking sites, blog sites and other innovations give individuals a chance to interact with one another. With that being said, having a social media marketing strategy is vital for a business to determine how you’ll communicate utilizing the internet. The purpose of this assignment is to determine the impact of social media and social media marketing on businesses today. Evaluate the reasons Social Media Marketing has become exceedingly popular among businesses of all sizes. Social media marketing is a new advertising strategy that businesses can use to appeal to a much wider and far more relevant market audience. This concept began as one that would promote social interaction but has now extended into the business sphere as social media marketing. When the social media craze first began, it was viewed primarily as a way for people to have fun online by communicating with one another about a diverse variety of topics. It didn’t take long for companies to realize the opportunities available for using social media for business. The participation in social media...
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...Assignment 2.1 Ford Analysis PSPR 6208 Strategic Marketing and Communications Fall 1 2013 1. Where would you put Ford in terms of competitive position? Why? By shifting their focus, developing a new marketing strategy and focusing on the Ford brand, Ford has dramatically enhanced their competitive position and turned things around for the company. In doing so, they strategically placed themselves back at the top in terms of competitive position. This was no small feat, especially considering the fact that they were in far worse shape than most car companies as recent as 2008 (Kotler & Armstrong pg 547). Ford with the assistance of new CEO Alan Mulally fought hard against bankruptcy and even harder to gain consumer trust in the company and the brand. This strategy has helped Ford to gain a competitive advantage, especially in terms of customer satisfaction. 2. Is Ford a market-centered company? How can it improve in this area? Considering the fact that Ford currently pays attention to both customers and competitors in designing the company’s marketing strategies, I would say they are definitely a market-centered company. This may not have always been the case, as is evident from reading the case study. At some point, Ford took its eye off the market, loosing focus, especially in regards to customer needs. I think that they were driven to shift their focus by several factors, top of mind being the dire economy. Moving forward, they will need to play...
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...Social Media Marketing BUS508: Contemporary Business November 30, 2013 What is Social Media Marketing? Why has Social Media Marketing become so popular? Is it now the most effective way to advertise and market? I have chosen to first define both marketing and social media. In my analysis it will allow you to fully grasp the importance and meaning of marketing and social media. My analysis will also allow you to easily determine why Social Media Marketing has become so popular among businesses. I’m a big believer in social media so I will display that throughout my paper. With technology in this day and age people always have the Internet in the palms of their hand and social media is always a button away. What is marketing? Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large (Boone & Kurtz, 2012). Without proper marketing strategies businesses would not be able to sell their goods and services. The most effective rule to consumers is to ensure that they always get what they want and always meet their needs before they ever surface. Marketing has always been part of business, from the earliest village traders to large 21st-century organizations producing and selling complex goods and services (Boone & Kurtz, 2012). How people market has now evolved and is now more on social media than ever. Social media is one of the...
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...CASE STUDY: MCDONALD’S Executive summary This case study looks to evaluate marketing within McDonald’s and will look into how it has affected McDonald’s in terms of its position within the market. Through research, a positive correlation has been revealed between how successful a company operates and how committed they are in terms of customer focus and its marketing strategy (Kloter and Armstrong, 2010). This study will demonstrate how McDonald’s marketing strategy has helped render the company a global success. This is shown through the SWOT analysis. This study has found that the pivotal ingredient in this company is the unique and effective marketing strategy. Also to be credited was that the strategy showed that there were areas which could potentially disrupt the current rate of success (in terms of monetary results) If they are not rectified. A recommendation could be to increase the amount of ‘Healthy foods’ McDonald’s currently offer, to do so McDonalds would need to invest more in their product segment of the marketing mix. Introduction In many cases a company does not become successful overnight. There are a number of key ingredients which need to be focused on, in order to achieve its potential. An important part of this is the ‘marketing strategy’. The majority of successful firms invest large sums of capital and time into tailoring their strategy focusing on the potential changes in customer levels, rivals and the environment (Bradley, 2005). McDonald’s currently...
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