Various Techniques Used for the Nike Shoe - Essay Example

? Introduction The ability to meet the specific needs of consumers by corporations is based first on the concept of creating the right approach to communication. As a business communicates specific needs and affiliations with the brands that are produced, there is the ability to meet consumer needs and to show how a specific product works. An example of marketing effectively to those who are in need of a specific product is through the Nike shoes. This particular strategy has produced one of the largest corporations and demands for shoes throughout the globe and continues to create a strong approach to meeting the needs of consumers while establishing an understanding of the shoes as a high quality product. The various techniques used for the Nike shoe are then able to strategically position the shoes ahead of other competitors that are in the market to sell shoes. Background of Organization Nike was established in 1972 by business owner, Bill Bowerman. The idea began in 1964 with the desire to create an athletic shoe that could be used effectively for competitive sports. By 1971, Bowerman had established a shoe that would work and then created the Nike brand to develop the new mechanics and techniques for the shoe. Bowerman began by making a contract with the University of Oregon runner Phil Knight. The approach was to give running shoes that would help Knight to have ease o use while running without having some of the malfunctions that come with basic shoes that are used. The business quickly gained a strong reputation in footwear with a current stance of 160 countries which sell the footwear and the employment of over 1 million people. The approach is to use a set of diversity inclusion within the organization while creating a strong reputation among those interested in the footwear (Nike, 2011). The success of Nike, with a revenue of $91.2 billion in 2010, is one which is based on a portfolio of products. There are now several affiliate businesses that work with Nike for the brand reputation. These include Cole Haan, Converse, Hurley International, Nike Golf and Umbro. The brand identity that is established all carries the overall features of the Nike logo. This is then divided into specific shoes used for sports, such as running shoes, basketball shoes and other specialized makes and models. There are also divisions for women, men and children to further the brand identity. Nike has incorporated sportswear as well as personal trainers with electronics to assist those that are looking for a different approach to their athletic regimen, creating a different set of brands within the Nike organization (Nike, 2011). Marketing Techniques and Strategies The marketing techniques that are used by Nike involve several dimensions of finding what the best methods are to reach consumers. The first way in which this is done is by segmentation. The theory of segmentation is defined as creating a presence by noting different target markets which would be interested in a product. Meeting this need by establishing demographic relationships can then provide a stronger movement toward sales among those that are interested in the products (Alderson, Cox, 2006 pg. 137). The segmentation of the products isn’t done by developing the product first, then creating a market that will need the item. Instead, there is an established presence created by need first. Each of the shoes that are presented by Nike is segmented first, than established with the mechanics of the shoe to create a need within the segment. Basketball, soccer, football, running shoes and segments among women and men are some of the several ways that Nike has approached building its brand. This is done within the internal environment first, than leads to establishing a presence among those in need with the item. The concept of segmentation becomes essential by noting that there is a need among different groups of individuals, which Nike can then meet by building a reputation from the science used behind the makes and models of each of the shoes. The target segmentation that is a part of Nike is furthered by the foundational concept that has allowed Nike to continue to expand and build into a set of popular culture items that can be used. Nike has used the popular slogan of “Just do it,” which continues to be noted around the world and is directly affiliated with the brand. The slogan is one which defines the athletic components of the shoes while building on a mentality of one who is able to indulge in sports and work with a competitive edge when participating in any activity. This is furthered with the Nike logo, a slanted checkmark that is placed on all of the shoes and items of Nike. The simple, but effective logo, is easily recognized and shows a symbolic relationship to movement and activity. This has established a strong brand reputation while making the company easy to recognize through the shoes that are worn and with brand recognition from these two foundational elements. These work as a communication method to the consumers, specifically which creates an understanding of the athletic footwear that is a part of the status of the corporation (Egan, 1998). The advertising that is used remains focused on the ability to meet the needs of athletes and the concepts which are provided in giving supportive footwear to those who are involved in athletics. The promotions of Nike are given with sponsorship agreements that are created among celebrity athletes, professional teams and college athlete teams. The strong identity with the shoe brand is then used to promote Nike and to create a stronger sense of the brand. The advertising is furthered with television ads and promotional items such as billboard ads, all used with specific advertising campaigns. The establishment of these ads is not only important because of the slogan and graphics used. The Nike commercials focused specifically on innovation and by showing the athletic capabilities through the shoes. The result was recognition in both the 1990s and 2002 in the Emmys for having the strongest advertisement. This has allowed the Nike brand to continue to establish a stronger reputation in the market while being distinct as one of the best companies that sell footwear (Ruttenberg, 2002). To further the advertisements, Nike continues to move into sponsorships with schools, athletic teams and others who can endorse the products. Nike has established a reputation among sports teams on various levels to buy Nike shoes with discounts and other levels of sponsorship in return. Giving some of the shoes to those in need and establishing a strong relationship with the schools has helped Nike to sell larger quantities to school while providing more opportunities to schools that are interested in the shoes. This has become one of the most effective methods of advertising, first because of the contract that is able to sell more athletic shoes, and also because of the loyal customers established who use the shoes not only on the team, but also after the sports are completed. The sponsorship established then moves into family, friends and the community recognizing that the athletic teams they support also use Nike. There is a relationship which is created between those using the footwear and the brand image which is given. The main concept which has been approached is one which has created symbolic interaction within the Nike brand while allowing the brand to create a specific understanding among various clients. The symbolic interaction is defined as a way of producing several dimensions of communication among potential consumers to show that the concepts produced are the best. The logo, slogan, images and the overall use of different individuals all create the same sense of symbols and build the marketing strategy established (Ferrell, Hartline, 2008). When looking at the establishment of Nike, the symbolism used can be seen through the product segmentation, use of the logo, slogan that has been developed and the continuous focus on highlighting and sponsoring athletes that use the brand. The highlighting of the athletes is symbolic of the strength and quality of the product, specifically when they are at a celebrity level. The other components of symbols used for athletes then establish an understanding that the ability to use the shoes for athletic purposes is one that can offer the needs of those who are interested in sports and want better footwear for the activities. Even though this isn’t communicated as a direct message, it changes the sense of awareness by the symbolic use of athletic footwear through the images provided. Broader Marketing Environment The marketing environment that has been created by Nike is furthered by the environment that is established for shoes. There are several competitors with shoes, including smaller and larger establishments that are continuously working on the same developments and global presence as Nike. Reebok, New Balance and other athletic footwear manufacturers are some of the other competitors that are taking similar approaches to footwear for athletic purposes, as well as for every day use. The strong competition in the market is one that Nike is continuously separating from, specifically because it remains focused on professional athletic wear while ensuring that the celebrities and the strong brand identity remain apart from others that are within the same competitive environment. The establishment of the external environment for Nike is one that has built into an understanding of consumer relationships in a different manner than others. The main ideal with the advertising that is used is to establish information, which specifically depicts the consumer behavior that will result. The more in which information is established toward consumers that are in the market, the better it becomes for those that are interested in the products available. The resonance marketing strategy is one of the concepts used, which specifically provides information on various levels while creating basic information that is stronger in viewpoint and which allows those who are interested in specific products to continue to understand the product and to associate with a sense of value that is established among the brand (Clemons, 2008, pg. 13). For Nike, the establishment into the external environment is one which has created a link between the sales and the needs of consumers by communicating the message of athletic footwear. The global marketing environment that they are currently in is one which has established a strong need for footwear. The general knowledge of consumers is that good footwear is needed to perform athletics, either at a basic or professional level. Most consumers are also now aware that different makes and models of shoes work more effectively while supporting individuals with various types of activities. The customer value and the social environment which has been created has provided Nike with more opportunities to establish a strong reputation while distinguishing their shoes among competitors that are in the market. Relationships and productivity have been built as a result, while providing an established reputation from the information provided (Bearden, 2008). There are several levels that create the established communication among Nike. This includes social, technical, institutional, political and economic environments (Bearden, 2008). The social, technical and institutional environments of Nike have established a strong reputation, specifically because of the interlinking to athletic footwear. The social establishment is based on the consumer information that is used. The institutional environment is compatible with this, specifically by endorsing and sponsoring the institutes of colleges, high schools and professional arenas that perform sports. Most of the advertising done by Nike is connected to these environments. The technical components that are available, such as the Internet, are then combined with this to create and establish a reputation among the individuals interested in the footwear. The relationship established creates a sense of high quality and value, which allows Nike to move outside of the competition in terms of the economic environment, with consistent prices that state only high quality, as opposed to fluctuating with the economics of the time. Role of Marketing in Consumer Society The concepts that Nike has applied in terms of establishing a strong brand identity among a global market is one that is created because of consumer society. The marketing that has been built in terms of the reputation of Nike is based on the approach used by Nike and the way in which the communication has linked to potential customers. The brand reputation that is established in any organization is based specifically on consumer power. The reputation established by consumers is what will determine the success or failure of a specific company as well as how the reputation will move in terms of global competition. It will also create the demand and the newer products that are available for those that are within a community. However, the consumer power that is established comes from the information communicated and the ability for those within any business to establish a specific reputation to those who are interested in the products. If this information matches with the consumer expectations, then the communication through the marketing will provide a stronger establishment among those in society (Knoitt, Zwick, Schroeder, 2006, pg. 950). When looking at the reputation of Nike, it can be seen that the communication and information used, specifically based on athletic quality, have met the consumer needs. The information retrieved through the marketing is to show that the company has created a quality shoe product that can help with any level of athletics. The symbolism that has established has created clear communication to the consumer. The product that has been built through Nike has then created a strong understanding that the quality for athletics is true to the advertising. The consumer power then endorses and helps the Nike product to grow, specifically by becoming loyal to the products that are sold while participating in the advertising, such as through sponsorship and word of mouth with the products. As this is done, the consumers are able to propel forward the market that Nike has established while creating a stronger reputation for those that are interested in the products. Another way that consumer power alters the way in which marketing works is through the concept of value and belief. If there is disbelief in the program or if there is a sense of not having the right products, then consumers will loose interest in the product. Currently, the association among consumers is based on social responsibility, which ensues that the corporation has fair values within the organization and is able to meet specific needs that are among those within society. This is furthered by creating a sense of value that allows consumers to respond in a positive or negative manner. For instance, if information is made available about the corporate structure having unfair hiring practices or not paying employees enough, then there will be changes to the corporation. The marketing then has to communicate more than a brand identity and should use symbolic meaning to establish the understanding that the social responsibility and build of the organization is one that is conducive to the needs of consumers (Ellen, Webb, Mohr, 2006, pg. 147). The message that is seen through the marketing of Nike is one that has created an understanding that the internal environment is reflective of the high quality products offered by the company. The global structure, establishment of offering diversity, as seen through the endorsed athletes, and the help given to those in schools all show a sense of corporate responsibility. The marketing symbolizes the fact that Nike is able to give back to the community by creating the shoes that are used among athletes. As this is done through the advertising and endorsement of schools, consumers create an understanding that there is responsibility among Nike. The marketing that is used is also inclusive of showing how the corporation is giving back to the community with endorsements of the business while showing a reputation that builds a fair and established understanding of the company and the brand that is created. Conclusion The concept of brand identity is one that has been established through Nike, specifically by creating a specific image of the products. The symbolism which is used through logos, slogans, product segmentation and the advertisements that are used work together to show consumers that the shoes offer high quality products to those interested in the shoes. The marketing strategies established are able to further into the external environment while working with institutions and the social stigma within communities for a stronger reputation. As this is done, Nike is able to create and present a high quality shoe that can be used for athletes, while communicating to the consumers that they provide one of the best shoes within the global market. References Alderson, Wroe, Reavis Cox. (2006). “Towards a Theory of Marketing.” Journal of Marekting (33), (2). Bearden, John. (2008). The Global Marketing Environment. New York: Routledge. Clemons, Eric. (2008). “How Information Changes Consumer Behavior and How Consumer Behavior Determines Corporate Strategy.” Journal of Management Information Systems 25 (2). Egan, Timothy. (1998). “The Swoon of the Swoosh.” The New York Times Magazine. Ellen, Pam, Deborah Webb, Lois Mohr. (2006). “Building Corporate Associations: Consumer Attributions for Corporate Social Responsibility Programs.” Journal of the Academy of Science 34 (2). Ferrell, OC, Michael Hartline. (2008). Marketing Strategy. Ohio: Thompson Corporation. Knott, Janice, Detlev Zwick, Jonathan Schroeder. (2006). “Mapping Consumer Power: an Integrative Framework for Marketing and Consumer Research.” European Journal of Marketing 40 (9). Nike. (2011). About Nike. Retrieved from: www.nike.com. [Website]. Rutenberg, Jim. (2002). “The Media Business Advertising Agenda: Nike Spot Wins an Emmy Award.” New York Times. Read More