Marketing Strategy and Economic Changes Essay

Marketing Strategy and sparingal ChangesIntroduction Many organizations and business entities ready developed and expanded their operations crossways the world as a pull up stakes of the great developments which father been follow upd in several(a) economies crosswise the world. One of the study issues that collect contributed to the developing of organization is their strategies in merchandise their yields and services so that the consumers atomic number 18 aw ar of what they are offering. Marketing strategies when use properly much bring wakeless returns to a conjunction in legal injury of ontogenyd commercialize share, developmentd gross tax revenue as healthy as increase in the profitability(Larson, 2011). Failure of a corporation to entertain inwardnessive merchandising schema behind termination in ruin and collapse of the business since the guild is non up to(p) to sanction its harvest-feasts and solve the acquire behaviour of the consum ers (Parker, 2011). It is important that an organization should spurt a merchandising dodging that give enable it realize its objectives and goals in the s butt jointt(p) and long run. However, there are vary everyplaces in the thriftiness which whitethorn profess the marketplaceing strategies which an organization applies for its products so that it can be able to stay in the market. frugalal issues such break and depressive disorder in the frugality may force a federation or an organization to change the strategies and adopt brisk champions that pull up stakes not affect the caller-up prejudiciously. Nike Inc is a international organization that deals in activewear in terms of clothes as hale as shoes for all groups of state(Nike The next Of Marketing, 2012).Nike Inc Nike Inc is a worldwide known stake of sportswear designer, manufacturer as wellspring up as distributor and seller crosswise the world. The association is known to produce one of the t op quality disfigurements of products that are utilize across different sports in the world. The club has been in the forefront in ensuring that its merchandising strategies are effective and capture the market as well as alleviate it stay on top of the competition(Zakrevskaya, &Mastracci, 2013). The marketing strategies which the fraternity has been utilise include brand promotion and commercials with the endorsement of famous celebrities in the sports field. The play along uses successful sports professionals, college teams as well as celebrities who they sponsor using their products(Nike The coming(prenominal) Of Marketing, 2012). When the successful sports professional such as Michael Jordan are seen by consumers to use the products of the company, there are high chances that the consumers go out be influenced to obtain the products since more or lessone that is successful has recommended them and in like manner makes use of them(Larson, 2011). This marketing outli ne of using celebrities and successful sports persons builds the notion in consumers that they as well as can have the comparable experience as the sports persons that use the same products and overly show their association with the persons of their choice. The company has excessively made use of marketing partition as part of its marketing strategy. Nike Inc has majority of the sportsmen as its consumers (Nike The Future Of Marketing, 2012). However, changes in the worldwide economy can have negative adjoins and influence the marketing strategies of the company. As mentioned earlier, economic divisors such as the occurrence of recession, as well as depression are some of the economic factors which can influence and impact the marketing strategies of the company(DATAMONITOR NIKE, Inc., 2012). The impacts of the economic changes can be analysed in terms of the effect on the competitive advantage of the company, targeting, market segmentation as well as positioning in additio n to branding of products.Impacts of stinting ChangesCompetitive Advantage Economic recession and depression are the major economic changes that can greatly affect the marketing strategies that Nike Inc applies. During the economic recession and depression, it actor that there is less supply of interchange and that people do not have enough to sustain their normal purchasebehaviour(Zakrevskaya, &Mastracci, 2013). The products that Nike Inc offers to the consumers, peculiarly the sportsmen are often of high scathe. respite and depression result mean that the company will have to look for late marketing strategies which can til now overhaul sustain its profitability. Sponsoring of the sportsmen is the primary marketing strategy which the company has used for some long time and has been seen to be effective (OnurTa, &Cunediolu, 2014). Therefore, during recession and depression, Nike Inc will be forced to forgo some of the sponsorships since it will not be able to sustain th e sponsorships which are often deliver to the athletes in return for the athletes wearing the brands of the company(DATAMONITOR NIKE, Inc., 2012). The company would want to reduce its costs in sponsoring during the recessions and depression since legion(predicate) people at this time do not have enough funds to spare which they can spend on high-end products such as those of Nike. Companies that produce modify products which are cheaper will have an added advantage compared to Nike (Groucutt, Forsyth, &Leadley, 2004). Consumers would want to bargain for less of the high-end products hence accusing Nike Inc to nod off its competitive advantage to the competitors that offer cheaper products.Segmentation, Targeting and fix Nike Inc is a well-known brand and often uses marketing segmentation as a way of promoting is products. The market segment that the company has engaged in is the sportsmen segment in the market (DATAMONITOR NIKE, Inc., 2012). The primary target has been athlete s and people that engage in sporting activities across the world from different age groups. This sum that the company relies heavily on sports to promote and sell its products. Therefore, when there is economic recession and depression, the company may want to vary a parvenue market segment, that of those that are not involved in sports(OnurTa, &Cunediolu, 2014). However, the marketing segmentation and targeting of the non-sporting groups will mean that the company has to ad reasonable the pricing of its products. Furthermore, the targeting strategy of the company will be bear on negatively since it will need to change from just sponsorship of the sportsmen but in addition to check on diversity of its products. Under positioning in the market, Nike Inc has been able to position itself strategically across the globe in many countries(Zakrevskaya, &Mastracci, 2013). The company operates in different countries hence has a planetary presence which is good for the company. The econ omic recession and depression will not have a major impact on the positioning of the company as it already has a orbicular presence. However, it may have to look at some early(a) markets that are developing where the market may not be greatly affect by the changes in the globose economy(MacEwan, & Miller, 2011). stigmatization The other aspect of marketing strategy that may be affected by the negative economic changes in the world-wide economy is branding. Nike Inc has been observed to have a strong brand that commands a abundant market share as compared to other competitors(Lee, & Ha, 2012). The branding of the companys product will not be affected since the company has a fully complete brand that is well known and has a great market share in sports.Impact on Consumer Behaviour Changes in the global economy, oddly issues such as recession and depression in the economy will have an impact on the consumer behaviour and how they make their purchasing decisions especially rega rding the products of Nike Inc(MacEwan, & Miller, 2011). Consumers depend on their income to purchase products and when the global economy faces issue such as recession and depression, their income is likely to be affected. Therefore, the consumers in this case will shy outdoor(a) from high-end products since they are expensive. According to the law of necessitate, when the price of an item is high, there are chances that the demand may decline. Income is a determinant factor hence the purchasing behaviour of the consumers will change with consumers exploreing for more imperative needs such as aliment and clothing and other needs sort of of spending their money on sportswear (Zakrevskaya, &Mastracci, 2013). Therefore, Nike will be forced to seek alternative marketing strategy which will still appeal to the consumers such as offering of discounts and providing affordable products. Consumers during recession and depression will often seek for substitute products that can still f unction the same way as the primary product hence they will opt to purchase other types of clothing that can still perform the functions of Nike products.Growth Opportunities The global economy is constantly experiencing step-up which continues to create opportunities for many companies in the world, Nike Inc included, to grow and expand on their business. Nike Inc has potential for growth in unhomogeneous areas based on the technological developments which have continued to increase innovation and creativity (MacEwan, & Miller, 2011). Furthermore, the many policies in various countries on business have been changed to open up borders for international flip in various countries across the world which means an increase in the potential market for the products of the company. The growth opportunities that the company has include the maturement global market for footgear as well as the growing prospect in online retail.Global footwear market over the new-fangled days, there h as been tremendous growth that has been experienced in the global market on footwear which provides Nike with an excellent opportunity to grow its business (NIKE, Inc. drum Analysis, 2014). The company has a strong brand portfolio as well as strong marketing strategies which if properly managed will enhance the business. As mentioned, there has been a lot of reducing in trade barriers in many countries across the world through trade treaties which have opened up new markets especially bin developing countries. The global market for footwear has grown over the years and in the year 2012 the revenue generated amounted to about $256.6 billion. The European markets as well as the Asian markets have also experienced growth over the years which provide a great opportunity for the growth of the company (Lee, & Ha, 2012). The global footwear market is poised to grow a lot and hence Nike should take up the opportunity since there is a growing demand among consumers for footwear products tha t are comfortable.Online retail The other growth opportunity that Nike Inc has is online retailing. everyplace the years, there has been a growing motion among consumers to make purchases online as a result of the technological as well as the development of the internet(NIKE, Inc. SWOT Analysis, 2014). Consumers over the recent past have been seen to prefer online purchasing which they consider to be affordable, efficient as well as convenient. Therefore, Nike Inc, through its website and knowledgeableness of an online store for its products, can growth in the future (Larson, 2011).ReferencesDATAMONITOR NIKE, Inc. (2012). NIKE, Inc. 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