M/508/0495 - Different Marketing Channels Which Can Be Used By Nike

TASK 1

Different methods of marketing communications and contemporary internal/external factors

Marketing communication is consist with various sort of methods and theories which an organisation uses in order to communicate with consumers when they launch a new product, makes modifications, offers discounts and so on. There are many sort of channels like radios, door to door selling, television and direct mail are mostly being used by companies in order to deliver information to consumers (Baker, 2014). It has been analysed that most of these media only gives opportunities to firms in order to deliver information on the other hand if a consumer is looking forward to communicate it is may be possible that they may not get any chances. NIKE is one of famous sports brand which was found in the year of 1964 and does its business in most of the countries. In 2017, US$34.35 billion was the amount which was generated as revenue and it has almost 75,000 employees who are working in different stores of NIKE all around the globe.

Range of products: NIKE is famous for its shoes which are mostly being liked by people all around world. Along with this, they offers from T-shirts, track suits, lowers, air tight water bottles, caps, jackets and so on. It has been analysed that founders of NIKE (Bill Bowerman and Phil Knight) have concentrated on health and made or manufactured their products and services in order to motivate consumers much motivated and to influence them to stay fit.

Most famous product of NIKE and its target market: In modern era, mostly people are looking forward to stay fit where they do running, does exercises and try to live a happy and healthy life. Through keeping an eye on interest of people NIKE has made their products in order to better serve to consumers and to motivate them to stay fit. Shoes can be stated as one of the products which is being considered as the most favourite one of consumers of this brand. Therefore, in terms of target market it has been analysed that NIKE mostly targets consumers in between the age of 14 to 40 who likes to stay fit or healthy. Shoes are being made with eye catching designs with full of comfort which directly attracts ample number of consumers towards this firm's shoes.

Different methods of marketing communication

According to Berthon and et. al., (2012), different marketing communicating methods have their own distinctive approach which needs to be properly analysed by companies and select the best one which do not cost much to them in order to do promotional activities of products. This statement clearly states that doing promotion of products is not an easy task. Research and development department of an NIKE does market research first and then take any sort of initiative in order to deliver all the information of products that they have launched.

Advertising: This can be stated as one of the cheapest mass communicating method which helps an organisation to deliver detailed information of products and services that they have launched. Along with this, if any sort of modifications that an organisation have made in their product can also be considered as an important thing and promotion can be done of them as well. Mostly it has been located that, this sort of promotional method is being done by industries in order to enhance their sales. Away with this, it has been analysed that organisation mostly uses different media like television, newspaper, online social sites, articles in magazines and so on. Therefore, it is very much required for organisation to select the best sort of approach in order to deliver appropriate and better information to consumers and to make them much influence as well so that to sustain at international market. NIKE mostly uses this sort of approach in order to promote products and services.

Personal Selling: This sort of method was being used in past years where a company hires sales people where they try to sale products and services to consumers at their home. But, it has been located that this method takes time which at the moment a company cannot afford in this era (Castronovo and Huang, 2012). Apart from this, this sort of method may cost much to NIKE therefore, this approach is being considered as the last one in today's world. Away from this, approach is also enclosed with phone calls, in store sales and so on.

Sales Promotion: This sort of approach is mostly being used by companies in order enhance their sales. This method is being adopted by NIKE when they aims to enhance their sales of existing products and services that are already being offered by them to consumers and are receiving normal profit margins from them. Here, it has been analysed that discounts, discounts, offers, buy one get one free are some strategies which are being used by NIKE in order to better serve to consumers and to fulfil their needs as well. Improvising customer's perception can be stated as one of the main aim of organisation in order to enhance their sales of commodities.

Direct Marketing: This is another approach which can be considered as a method which is being used by companies in an appropriate manner (Corner and Randall, 2011). NIKE which is a multinational brand is using this approach in order to enhance their sales of products and services. Here, companies mostly hires an individual and gives him/her designation as sales man where his/her duty is to deliver information about the products of company and try to influence consumers so that they buy them right on time. 

Public Relations: Another method which is being used by companies in order to better enhance their sales. This approach is one of traditional one that every single organisation still uses so that to increase product's sales. Apart from this, it has been analysed that there are ample number of approaches which are being used by NIKE in order to bettering the profit margins and productivity as well. Maintaining long term relation with customers is the main aim of NIKE where managers, employees and other people mostly try to communicate with consumers and then give information of products and services that they are going to launch in short period of time in near future.

Marketing theory (STP model):

Segmentation: This approach includes identification, selection, and application process which needs to be considered in an appropriate manner (Danaher and Rossiter, 2011). Therefore, it is very much required for NIKE to keep on looking into this aspect so that to better serve to consumers according to their needs.

Targeting: This stage is much enclosed with locating most attractive segment from various segments that aid in attaining all the goals and objectives in much effective and in appropriate sense as well. NIKE can improvise its profit margins.

Positioning: Final stage where attracting people is being done towards the selected products and services that are being offered by company. Along with this, profit margins can be raised to maximum is needs of consumers are properly analysed in much effective and in appropriate sense.

Internal and external factors that put impact on decisions of board of directors in different consumer buying process:

Board of Directors of a company mostly takes important decisions in order to enhance profitability and productivity both at the same time. But, it has been located that there are ample number of issues that stays connected to internal and external elements which may put impact on decision making process of BOD. NIKE which is a big and multinational brand it has been located that board of directors of this company took initiatives through which a company has made many determinations in much effective and in appropriate manner so that to gain competitive advantages at international market (Delgado-Ballester, Navarro and Sicilia, 2012). Internal factors like employees, customers, suppliers, organisational structure, inner policies are being considered. On the other hand, some external elements like political, environmental, legal, economical, technological and social do comes under this sector which may put impact on determinations of BOD of NIKE.

Consumer Buying Process:

This process is much enclosed with various stages which includes determinations of consumers and these steps are mentioned beneath:

Problem recognition- First step includes needs of an individual where that person looks forward to fulfil his/her own needs. As consumers do belongs to internal factor it is may be possible that rapid changing needs of devour do put impact on decision making process of BOD of NIKE.

Search information- Second phase where customers look forward to fill his/her need and does some research where he/she can fulfil it. BOD of NIKE should open their stores at places where they can target consumers in ample numbers.

Alternatives evaluation- Third stage where customers try to go through different alternatives that it has of goods which he/she is willing to purchase in order to save more money (Finney, 2011). Prices mostly being set by BOD of company and this stage can put impact on decision which was being made by them related to prices of products.

Purchase decision- Fourth step where an individual try to purchase products in order to fulfil needs with high level of satisfaction. BOD of NIKE should take decisions so that manufacturing of products is being done while keeping an eye on requirements of consumers. Failure into this may lead firm to create heavy losses for it.

Post purchase behaviour- This can be considered as the l