Assignment Content (The Company I chose was Nike - so that's the 1 that you have to use!) Purpose of AssignmentThe purpose of this assignment is to help students think through the importance of socia

Running Head: NIKE 0

Nike Marketing Strategy

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Setting the price of products in the market is based on a concept featuring the cost of production and the demand it’s going to have on distribution to the market. That said price setting is a product of concern for two or more parties involved, which in the market setting include the party that’s exchanging the goods or services with intent to receive a certain amount of money amounting to the value of the items or services exchanged. When it comes to distribution which just like price setting is a prime element in marketing strategies, It can be implemented with the aid of other personnel using different channels with either distributers or intermediaries. (Zhu, Shi, Xie, & Song, 2020). Also, it’s just as dependent on the demand and supply patterns the market has to offer. Nike being our company of interest will have us focusing on some of their marketing strategies.

Nike is a sports brand company that sells products of impeccable quality, have an impressive technology and has over the years outstood its other competing companies. Its marketing strategy has become crystal over the years as celebrities have been observed to market their products in ways other companies or firms haven’t still been able to. Nike has also captured the sports industry providing athletes with products at their beck and call; targeting every type of sport.

Price setting for Nike is a huge determinant and factor behind their success. They have a thing known as ‘Value Based Pricing’ where it intends to captures the customers to place the value on the product to be marketed that way for the Nike company it’s not about the cheapness of the product but the quality and value of the product as per the customers placement. They purpose to enhance their products year in year out based on the aspect of creativity with this price setting strategy they are by far the best seller in athletic footwear.

As for distribution, just like most companies it can occur by distributing either to the easily reachable wholesalers, since it’s based in the USA; proximity is key. Another approach is selling directly to its customers through its websites and factories or through e commerce companies such as Amazon. Nike Company can use other channels such as collaborating with other footwear companies such as JD sports. In its distribution plan it intends to sell directly to their consumers.

In marketing, the distribution section plan involves identifying what your customers are interested in buying, what your competitors are distributing in the market, the aftermath to selling products in a particular location and the channels of distribution that may be put into consideration. Nike as mentioned earlier has a distribution plan of either selling to the easily accessible wholesalers or directly to its consumers or to global brand consumers but ultimately aims to sell to its consumers personally, this way they experience higher margins.

The distribution list is an important element in the marketing strategy of Nike Company, it involves mailing a large number of organizations with intentions of passing a similar message, and however the companies being mailed are not in a position to send replies. This form of mailing is essential as a part of marketing strategy because the distribution lists give a feedback on sales performance and customer satisfaction; also, in such list it’s usually important to include as much information as possible. (Kim, 2020). That way the audience remains engaged. Nike implements this email distribution list to establish a profound customer base, to reach out to its loyal customer and to target an audience for the latest products and ultimately to offer discounts to its customers.

Intensive, selective and exclusive models of distribution are essential in marketing strategy. Nike however puts into practice the selective and exclusive. Since Nike is a high-end company selling prestigious and designer footwear they are able to now sell in specific outlets. Exclusive is next level type of distribution which has a customer-based program that rewards customer loyalty. The advantage of selective distribution for Nike is expenses are saved and there’s improvement in customer satisfaction.

Nikes positioning strategy is ultimately based on the name its built for itself over the years with its exclusive logo and its motto ‘just do it’. As mentioned earlier it’s a high-end brand company and is premium, known to sell expensive designer products.

Dynamic pricing is constantly changing while static pricing exists for longer periods of time. Nike customers have shown to enjoy the dynamic approach in pricing strategies at Nike. Dynamic pricing in Nike keeps on fluctuating and other mitigating factors such as the geographical location are determinants. (Zhang, Lei, Zhang, & Song, 2017). As mentioned earlier Nike price their products based on the value of their products and practice promotional pricing through discounts. Nike sets aside billions just to promote and advertise its brand. These marketing strategies have over the years lured individuals to purchasing their products religiously.

References

Kim, M. (2020). How Phil Knight made Nike a leader in the sport industry: examining the success factors. Sport in Society, 1-12.

Zhu, X., Shi, J., Xie, F., & Song, R. (2020). Pricing strategy and system performance in a cloud-based manufacturing system built on blockchain technology. Journal of Intelligent Manufacturing, 1-18

.Zhang, J., Lei, L., Zhang, S., & Song, L. (2017). Dynamic vs. static pricing in a supply chain with advertising. Computers & Industrial Engineering, 109, 266-279.