Nike’s marketing research process is complex and time-consuming. You need to make sure you are taking the necessary steps to improve your process so that you can generate more accurate data and insights. This guide will walk you through the 3 simple steps necessary for a successful Nike marketing research process:
Why You Should Invest in Marketing Research?
Marketing research is a process that helps businesses understand their customers and find new ways to sell their products or services. Marketing research can be used in a variety of industries, such as food retailing, manufacturing, information technology, and advertising.
How does Marketing Research Work
In order to conduct marketing research, businesses first need to identify their target market. They then need to develop product or service prototypes that will meet the needs of their target market. Then, they need to gather data about the products and services being offered by their target market in order to better understand them and determine if they are a good fit for their business.
The final step of marketing research is the analysis of that data. This can involve looking at how best to sell our products or services to our target market, studying customerbehavior, and understanding what motivates customers.
Marketing Research Process of Nike
Nike’s management must decide whether to stick with the new form of advertising that is more centered on product innovation or continue marketing its sportswear through the product-based advertisements it currently uses. Nike has been forced by this new marketing strategy to stop using well-known celebrities to promote its brand and instead turn to consumer-focused advertisements. Additionally, the new strategy is giving Reebok and Adidas a competitive advantage over Nike because they are now concentrating on product-based advertising, which is working better than Nike’s new innovation-based advertising.
Additionally, Nike’s management must decide whether to enter foreign markets in order to maintain its market-leading position and boost sales. Nike’s domestic market, the United States, accounts for a large portion of its sales, so expanding internationally could prove costly as the company runs the risk of losing its domestic customer base.
The issue with Nike’s marketing research has been a lack of consumer feedback, as if there had been sufficient consumer feedback, Nike could have known what customers really wanted rather than speculating. For instance, the more than $100 price per product that Nike charges when its rivals charge less is one reason why some customers are losing interest in its products.
Therefore, Nike is only concentrating on altering the type of marketing and intends to enter the international market before addressing the primary issue, which is price-related. Therefore, Nike should investigate why its rivals are still achieving success while using product-based marketing advertisements. The price may hold the key.
Does the newly developed, innovative marketing strategy satisfy the needs of the target audience? Is it wise to enter the global market or could doing so hurt the domestic market? Before making a choice, the Nike marketing and research team should concentrate on some of these research questions. The conclusion drawn from the aforementioned research questions is that the new marketing strategy based on innovation will ultimately satisfy consumer demand; consequently, Nike should continue to make additional efforts to ensure its success. The alternative claim is that entering a foreign market will benefit the domestic market by enhancing the company’s international reputation rather than harming domestic consumers.
Given its accessibility today, the internet is a priceless resource. Nike can use the internet to strengthen its market research by setting up a method for current and potential customers to provide feedback. This criticism should focus on the products’ dependability, the potency of their marketing campaigns, the products’ affordability, and the performance of their rivals’ products in the market (Young, 2010). One way to implement such a system is to simply set up an email account or use social media to enable customers to freely communicate with the marketing research team.
Marketing Process of Nike
- Put the needs of the customer first
Customers prefer high-quality goods with significant advantages.
Things that help them personally are simple justifications in their eyes. The Nike Moon shoes accomplished this, but only because the buyer was starting to comprehend the advantages of jogging for their health. Bill simply wanted to spread the word about something he believed in; his true intention wasn’t to sell shoes. Although it may not sound like one, this should be a marketing strategy.
- Build Your Plan Around a Sensed Need
For Nike’s target market, a better method of getting in shape was initially perceived as being more important than better running shoes.
Although kids and athletes were already fond of running in the 1970s, it wasn’t the widely practiced social activity that it is today. The expansion of the white-collar workforce paved the way for social initiatives that promoted cardiovascular health. Once the fashion was established, the perceived need changed, and “jogging shoes” themselves took its place.
- Have faith in the merchandise you are promoting.
It’s doubtful that Bowerman set out to become rich when he wrote the pages of his first book on jogging.
That was not the reason behind his actions. His only objective was to spread the word about a sport and an idea he supported. Shouldn’t we, as marketers, have faith in the things we are trying to sell? It undoubtedly made marketing for Bowerman much simpler. Without even being aware of it, he was “marketing.”
- Promote benefits that are simple to identify rather than the product.
Jogging is fairly simple to understand, but the waffle tread is more complicated (at least not until you understand why Bowerman made it in the first place). His objective was to create the lightest running shoe possible. He thought that this element could significantly increase a distance runner’s speed on its own. His product was successful, and it quickly won the respect of the business community.
How Nike’s Marketing Plan Has Changed
Since the 1970s, both the marketing environment and Nike’s marketing strategy have changed.
In fact, it’s impressive how well the brand has adapted to new technologies and trends without sacrificing the essence of its identity or brand voice. It’s important to realize that while their general style and marketing strategies have evolved with the times, their customer-focused messaging has stayed the same.
- Adopt Modern Technologies
While Nike’s initial marketing strategy focused primarily on print media, they later went on to dominate other platforms through contemporary social media platforms, such as television in the 1980s and 1990s.
- Consider Your Audience’s Needs
Nike hasn’t traditionally embraced new communication channels for its marketing efforts just because they’re chasing after cutting-edge gadgets. Not at all. Instead, they have quickly mastered new platforms because that is where their customers are.
Take a look at their Instagram profile, for instance.
They are aware that their target market is primarily composed of avid Instagram users, so it makes sense for their company to keep an account there. They do, however, also check to see that every post is useful. They share inspirational messages rather than blatant sales pitches that disrupt the flow of their followers’ feeds.
Other posts link users to niche Nike Instagram sub-accounts while subtly referencing the brand’s history and sponsored influencers. They could have simply said, “Check out our women’s footwear and apparel profile, as well as our general running product profile,” in this situation.
Instead, they went above and beyond to produce a work that is both memorable and enjoyable and still relevant to what their audience wants to see.
- Keep your sense of purpose strong.
They assert that things change more slowly than they actually do.
That has undoubtedly remained the case for Nike. Nike actively monitors the consistency of their brand message across all of their current content marketing initiatives. Instead of emphasizing the features of their products, they concentrate on producing content that highlights the advantages of their offerings. Their branding and message continue to be centered on assisting customers in becoming better at what they enjoy doing.
It demonstrates that they are thinking about their audience’s needs while remaining true to themselves by moving their content marketing to the platforms where their customers are. While many of Nike’s competitors have come and gone from the public eye, their marketing strategy has been successful in keeping a global brand alive.
Marketing Mix for Nike (The Four Ps)
Understanding the marketing mix in which these promotional activities are used is helpful in understanding Nike’s marketing strategy.
Sports and athletic footwear, clothing, gear, and accessories are all sold by Nike. Though their specialty is still athletic apparel, the brand has recently expanded into more stylish clothing lines.
Nike uses value-based and premium pricing strategies to set the price of and drive sales of its products.
Consumer perception is used in value-based pricing to calculate the highest price that customers will accept for a product.
On the other hand, when you take into account Nike’s use of celebrity endorsements and influencer marketing, which positions Nike as a premium brand that is worth paying premium prices for, premium pricing comes into play.
Three main channels—retail stores, the Nike website, and company-owned retail outlets—are used by Nike to sell its goods.
Nike’s use of retail outlets is a successful strategy because it enables them to reach their customers where they are without spending astronomical sums of money to establish a chain of brand-specific stores.
Their online store offers more options than physical stores, but it is limited because customers cannot view and test the products before making a purchase.
The retail locations of Nike serve as an additional channel for customer contact and frequently offer more affordable prices than traditional stores. However, their reach and access to populations are constrained.
Nike heavily uses advertisements to market its goods, particularly those that feature famous athletes and personalities.
Nike also uses sales promotion techniques, such as discount codes, to persuade potential customers to purchase its products.
How To Use Nike’s Marketing Technique For Your Own Brand
Even Nike’s marketing strategy’s history is intriguing. At this point, you probably want to know how to use these lessons in your own work.
- Determine Your Audience’s Needs
Your target audience is on the Internet because they need information.
Making engaging content that addresses these issues is one way to establish your company, blog, or brand as an authority in your industry or topic. To do this effectively, you must first fully comprehend the objectives and questions of your audience, as well as be available to respond and provide solutions as needed.
If you succeed in doing this, you might even inspire readers to become ardent brand supporters.
People were looking for new ways to stay in shape in the case of Nike. Jogging shoes were required as the sport gained popularity. Then, Nike cleverly positioned themselves as a company that not only made shoes but also assisted its customers in achieving their fitness goals (and just happened to make shoes that supported that goal).
If you’re unsure of what your audience is actually seeking, try temporarily putting yourself in their position and thinking beyond the boundaries of your offering (no pun intended). Consider the objective your customer is trying to achieve rather than the features or competitive advantages of your product. Then, be there to provide them with the knowledge, goods, and services they require to make it happen.
This indicates that you must first conduct research.
- Determine the most effective means of contacting your audience
This means that you need to determine where your audience hangs out online and how to get in front of them there in order to effectively market to them through your blog and other digital channels. Which social media platforms do they frequent the most? Should you spend money on those networks to promote your content? Do your customers think an email newsletter makes sense? Could they have an interest in print collateral?
These are significant questions, but the most crucial thing to keep in mind is that it’s crucial to go where your audience is.
Think about your customer’s habits, the types of content they prefer, and where they prefer to find it before deciding on any content distribution strategy. When it comes to doing everything you can to promote your content, make sure you are methodical in your approach.
You can’t afford to accept the status quo if you want to market like Nike, after all.
- Produce Entertaining Content That Speaks to Audience Needs
Every piece of content you produce, whether it appears on your blog, social media platforms, video platforms, or print materials, should address the needs of your audience.
Additionally, you should be producing the best online content on your subject.
It’s time to reconsider your strategy if you’re not addressing concerns, providing solutions, entertaining your audience, or otherwise assisting them in getting better at what they enjoy. Consider everything from simple keyword research to surveys if you’re unsure of what kind of needs your customers really have.
This procedure ought to help you visualize how to approach this content marketing process:
You should also think about the resources and budget you have for content creation.
By improving your marketing research process, you can improve the accuracy of your data, make better use of your research tools, and ultimately improve your marketing strategy. Overall, Conducting Marketing Research should be a key part of any business’s efforts to grow.