BTEC- HNC in BUSINESS
Unit 1- MARKETING
Assignment 1
The Concept and Process of Marketing
Name- Karan Aggarwal
Tutor- Marion Fieldstead
Date- 28/11/2007
Contents: Page:
- Introduction…………………………………………….03
- Comparing Alternative Definitions of Marketing……..04
- Nike a Market Oriented Organisation…………………05
- Elements of the Marketing Concept…………………...07
- Benefits & Costs of a Marketing Approach…………...08
- Identifying Factors Influencing Marketing Decesions.11
- Reference List………………………………………….16
- Bibliography……………………………………………19
Company Profile: Nike Inc.
Founded: 1972
Type: Public
Ticker: NKE
Stock Exchange: NYSE
Industry: Sportswear and Sports Equipment
Employees: 30200
2007 Sales: 16,326,000,000
Slogan: Just Do It!
Website: www.nike.com
Introduction
Blue Ribbon Sports now known as ‘NIKE’ was named after the Greek Goddess of victory, founded, in 1965, by The track athlete Phil Knight and his coach Bill Bowerman. Nike has built the omnipotent ‘Swoosh’ {which represents the wing of Nike, the goddess of victory} into one of the most popular and known brand symbols on the planet.
The power of its brand logo demonstrates the company’s superb marketing skills.
The company’s strategy of building superior products around popular athletes and its classic ‘Just do it!’ ad campaign have once and for all changed the face of sports marketing. [1]
Business Description:
“The Group's principal activities are to design, produce, develop and market high quality sports and fitness footwear, apparel, equipment and accessory products. It mainly markets athletic footwear and athletic apparel worldwide. The Group also caters its products to tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking and other athletic and recreational uses. The trademarks of the Group include NIKE(R) and Swoosh Design(R) and are sold under the brand names Cole Haan(R), Bauer(R) and NIKE(R).”[2]
“The Group operates in six continents. Its suppliers, shippers, retailers and service providers employ close to 1 million people. The diversity inherent in such size is helping Nike evolve its role as a global company”. [3]
Nike Inc. Company Mission:
“To bring inspiration and innovation to every athlete* in the world”.
*“If you have a body, you are an athlete.”
-Bill Bowerman.
Source: (www.nikebiz.com)[27 Nov. 07]
Comparing Alternative Definitions of Marketing
There are many definitions of marketing. “Peter Drucker observed that "the aim of marketing is to make selling superfluous." What Drucker meant is that marketing's task is to discover unmet needs and to prepare satisfying solutions.” [4]
Marketing is the activities the firm undertakes in order to meet the needs and wants of a customer and provide the products or the services which satisfy these needs and wants, keeping in mind the firms objectives i.e. things which it does in order to gain customers and maintain them by meeting customer demand; underpinning the firm’s objectives.
Thus a better definition of marketing is focused on customer orientation and satisfaction of customer needs and wants.
“A corporate state of mind that exists on integration and co-ordination of all the marketing functions which, in turn are melded with all other corporate functions, for the basic objective of producing long range profits.-Felton, 1959.
This definition not only focuses on the basic marketing functions but also acknowledges its integration with other functions of the business in order to gain long range profits.
“A social and managerial process by which individuals and groups obtain what they need and want, through creating and exchanging products and values with others.”
-Kotler et al-2005:pg6
This definition defines marketing as a managed process of mutual exchanges satisfying the needs and wants of both parties whilst acknowledging the social aspect of it.
“Marketing is the management process that identifies, anticipates, and satisfies customer requirements profitably.” -The Charted Institute of Marketing
This definition looks at the satisfaction of customer wants by identifying them not only in the present but also analysing them in the future underpinning the firm’s primary objective of profitability.
“The right product, in the right place, at the right time, and at the right price”
-Adcock et al
This is a short and snappy but a realistic definition of marketing based on McCarthy’s 4P’s.
“Marketing is the process whereby society, to supply its consumption needs, evolves distributive systems composed of participants, who, interacting under constraints - technical (economic) and ethical (social) - create the transactions or flows which resolve market separations and result in exchange and consumption.”
-Bartles.
This definition of marketing focuses upon the power of societies own ability to create mutual transactions whilst considering the social and economic aspects.
Nike - A Market Oriented Organisation
“Market orientation is usually defined as the organization wide generation, dissemination, and responsiveness to market intelligence…..The concept of market orientation is built on three pillars of customer focus, coordinated marketing and profitability”. [5]
“Nike’s distinctive competency lies in the area of marketing, particularity in the area of consumer brand awareness and brand power. While the reasons that Nike is successful in marketing our products are numerous, this key distinctive competency towers over our competitors. As a result, Nike’s market share is number-one in the athletic footwear industry. Catch phrases like, "Just Do It," and symbols like the Nike "Swoosh," couple with sports icons to serve as instant reminders of the Nike Empire. [6]
