Marketing and Nike

1110 Words5 Pages
Kotler Keller: Marketing Management /page: 51-52 / Marketing Excellence / Nike
Question 1: What are the pros, cons and risks associated with Nike’s core marketing strategy ? We can evaluate Nike’s core marketing strategy as related them to the relevant marketing theories. First of them is distribution theory. Nike distributes its products on different level basis. The high quality products are given to a certain distributers while the low price to be sold at highly discounted price at the retail stores such as Wal-Mart. Nike has also become the leader in the e-commerce by being the first to the market whit its e-commerce website. This program represents the first time a company has offered mass footwear through the internet and provides
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There is intense competition faced by Nike. Their competitors are Adidas, Reebok, Puma, and so forth, whilst competition is tighter with the coming of Adidas. More, the product line is slightly different between Nike and Adidas. 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 environment. The risks will have a negative influence about Nike's future development. Nike needs to stay on the top of changes in consumer taste and preferences as evidenced by changes in fashion. So Nike face the risk that fashion trends may change so fast that Nike fails to follow. If Nike cannot follow the fitness trends in the market they will face risks of losing market shares. To compete with this risks and problems, Nike should position it as a trendsetter and not a trend follower and be responsible to their customers. The global trends are to be fashion and personality. So Nike change its marketing strategies and products design to become more fashion and focus on the youth consumers. It brings risks to Nike because in the traditional mind of customers, they consider Nike only sell the athletic products. The fashion or the changing style products is unimaginative for customers to purchase. Not all the customers can follow the changing of Nike. Therefore, Nike should analyse the market and customers' preference as well as customers'

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