Nikes Business Model - Essay Example

This includes signing superstars like Tiger Woods, Serena Williams, etc., as brand ambassadors.

The key elements of Nike’s marketing include:

• taking a personal approach to the customer or prospect
• eliciting a response
• maintaining a ‘relationship’ with customers, to develop long-term loyalty
• see recent inventions and products
• eliminate the ‘middle-man’
• peruse a whole range of items and prices, from home
• order, pay, and receive goods at home
• view stock before traveling to a store

2. Nike's strategies brought a new change in the market; it became an eye-opener to its competitors and started a phenomenon of marketing strategies to stay alive in the market. Many companies think of ‘creative’ communications as being memorable for their entertainment, humor, or impact, however, effective creativity must be built on a foundation that:

• attracts and holds the attention
• gets the message across clearly
• appeals to a need
• is relevant to the target audience
• encourages long-term relationship

Direct marketing prospects have time to think and choose whether or not to act. They look for reasons to reject an offer. Direct marketing makes a call to action, which aims to move the prospect beyond thinking ‘that’s a clever ad’. The marketer needs to determine the time of year, which is most likely to provide the best results for a campaign and plan accordingly. Production and execution of the campaign need to be coordinated within a realistic and appropriate time frame.

With busy work, family, and social commitments, customers have less time to shop around for the right product, giving great appeal to the convenient buying methods offered by direct marketing or mail order. Marketers also offer personal attention and a concern for the satisfaction of individual needs, which is not always found in large retail stores.

3. There is no point in running a test or strategy for something, which makes little difference, like the alteration of one word in a headline. Successful direct marketing results from careful and regular testing. The market is fluid, keep abreast of changes and alter with it. Never outlay huge sums of money on a campaign based on the results of one test alone. The actual campaign is rarely as high in response as the test.

            ‘Depth Research’ is a term used by Roman (Integrated Direct Marketing) to describe a ‘depth’ rather than ‘breadth’ approach to research. This method advocates interviewing a small, careful selection of people, using a ‘well-planned, relevant questionnaire’.

The Internet has made depth research easier. A well-designed online questionnaire with a range of geo-demographic and more open questions can enable your customers to help you understand them efficiently and cost-effectively.

Keep in mind, though, that people often feel freer to bend the truth in online surveys and questionnaires. Making as much of the form as possible optional rather than mandatory will ensure that the only responses you get will be from people who are genuinely interested in providing you with information.