To understand the full spectrum of any market a business must recognize not only the industry itself but also the targeted consumers. Nike just as any other company uses different marketing strategies and to create objectives, firms must first conduct research. Part of research is identifying a target audience to place marketing focus. It must also be remembered that companies may create an audience profile to target its marketing.
Research
Primary Research
Primary research is the initial element of market research and is used to attain data and information from consumers to support defined problems and support the marketing plan. Exploratory and specific are the market research types, and Nike conducts research using both. Nike uses open-ended basis exploratory research with sampling surveys of sorts by way of social media, forums, email, postal mail, telephonic, interviews, etc. to gain calculated customer insights. “The basic idea of sampling is that by selecting some of the elements in a population, we may draw conclusions about the entire population” (Cooper & Schindler, 2011, p. 364). Nike uses specific research methods when needing to identify customer satisfaction, requests, and anticipations. Using the primary research tool allows Nike to steadily build consumer relationships, create co-value, strategize, and resolve problems.
Secondary Research
Secondary research is similar to primary research, but there are differences such as business data, and intelligence is generated for a certain targeted region that Nike is currently operating or planning to operate within. The secondary research that Nike uses is demographics, psychographics, behaviors, geography, etc., focusing in on employment, education, inflation, taxes, etc. These results allow Nike to determine target audiences for sportswear sales and locations for establishing retail outlets. Reports are internally created and retrieved from external sources like government agencies, public entities, private companies, news media, internet, etc.
Consumer Analysis
Consumer analysis recognizes and gathers data for a target market and the needs of the consumers or even narrowed down to the target customers. This element of research is crucial in establishing Nike’s prosperous marketing of its sportswear apparel products. Large companies like Nike and even smaller businesses complete research studies however simple or defined identifying customer shopping habits. Nike analyzes customer satisfaction, value desire, shopping habits, buying frequencies, etc. Results help Nike narrow customer behavior assisting in conforming sportswear apparel by wants, technology, fads, styles, and brands. Information gained helps Nike not just identify products but also specific products and brands to develop improvements and appropriate market segmentation.
Customer Profile
Nike uses data of customer profiles as a research tool. Customer profiles are created using demographics of such as level of education, religious beliefs, gender type, ethnicity, age in years, residence locale, marital status, etc. Psychographics are also part of the customer profile and typically address what types of jobs held, common places to shop, physical fitness center memberships, sports played, activities involved in, interested hobbies, social activities attended, vacation spots, etc. After profiles are established, Nike now has the in-depth insight of buying behavior and geographic location and can now create strategic marketing objectives. Understanding customers allow Nike to try and win their hearts and minds through marketing.
Continuous Monitoring and Research
For Nike to stay on top as a sportswear sales leader and keep a competitive advantage, it must continuously conduct research and monitor the market industry. Nike realizes that it has various competitors and must maintain its marketing plan as a living document and update it accordingly as required. “Consumers are better educated and better informed than ever, and they have the tools to verify companies’ claims and seek out superior alternatives” (Kotler & Keller, 2016, p. 128). With that said, Nike stays abreast of consumers’ needs and current market statistics allowing for response to changes almost instantaneously.
Environmental Scanning
Nike conducts a SWOT-T (strengths, weaknesses, opportunities, threats, and trends) internal and external analysis frequently along with benchmarking to maintain constant relevance. “SWOT analysis is a historically popular technique through which managers create a quick overview of a company’s strategic situation” (Pearce & Robinson, 2009, p. 159). Below is the latest SWOT-T analysis matrix results summarized from (Nike Form 10K, 2017).
Strengths. World sales leader in athletic apparel and footwear, strong customer satisfaction and loyalty, global brand identification, full spectrum sportswear line offered, and well-respected company.
Weaknesses. Prices are considerably higher than most competitors, seasonal sales, the budget for research and development, the budget for marketing and advertisement, and overseas manufacturing.
Opportunities. The addition of continued global expansion, sponsor professional athletes, research and development for new products, consumer demand, and society fashion changes.
Threats. Crowded market industry, competitors produce similar brands, competitors competition, commercial retailers consolidations, and unpredictable global economic conditions.
Trends. Large, strong and growing market, constant revenue increase over five year period, evolving technology enhances products, innovation improves products, and diversity is strengthening company name.
Target Market
Demographic Profile
The demographics identified are younger people that have a minimal income and not highly educated but diverse within ethnicity and beliefs. Nike is focusing on young singles and starter families attempting to catch loyalist early.
Age = 25 to 35
Gender = Nongender specific
Family = Single or early family
Income = $25,000 to $40,000
Education = High school graduates
Occupation = Blue collar
Religion = Non-denominational
Nationality = Domestic and global
Psychographic Profile
Target marketing toward individuals that are active in sports and exercise. Personnel that is aware of current fashion trends are profiled. Individuals that wear sporting apparel out in public even when not exercising. Young families with small children enrolled in sports programs. Workers that wear moisture wicking materials are also profiled.
Buyer Behavior Profile
Attract buyers that are occasional and impulsive in the attempt to create returning customers. Buyers that appreciate high-quality sportswear purchase behavior are deemed appropriate. Shoppers that purchase brand names are targeted. Nike seeks consumers that want exceptional service. Purchasers that want value and will spend a little more for it.
Geographic Profile
Nike is established in the US domestic and widely global. World main regions are currently North, Central and South America, Canada, Eastern Europe, and Southeast Asia. Urban socialites and rural dwellers are included equally.
Conclusion
Nike has conducted its extensive research and identified its target market. Nike also has taken its understanding of the market and tailored its marketing focus toward a specific target audience. Nike may now use newly learned knowledge and lessons learned and build relationships to enhance consumer preferences, value, and loyalty.
Cooper, D. R. & Schindler, P. S. (2011). Business research methods (11th ed). Retrieved from The University of Phoenix eBook Collection database.
Kotler, P. & Keller, K. L. (2016). Marketing Management (15th ed.). Retrieved from The University of Phoenix eBook Collection database.
Nike Form 10K. (2017). Nike annual reports: Current and archived. Retrieved from http://investors.nike.com/investors/news-events-and-reports/?toggle=reports
Pearce, J. A. & Robinson, R. B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). Retrieved from The University of Phoenix eBook Collection database.
